Market News

Soybeans weak, corn mixed, watching late harvest activity

 

Soybeans were modestly lower on fund and technical selling. This year’s harvest is within a few points of officially being over with generally drier conditions expected in many areas. The USDA’s final 2017 production numbers are out January. China bought 130,000 tons of 2017/18 U.S. beans. Weekly export sales numbers are delayed until Friday. Soybean meal was lower and bean oil was higher, adjusting product spreads. The trade’s also keeping an eye on planting conditions in South America, with more rain expected in parts of central Brazil against a generally drier pattern in Argentina. AgRural says 73% of Brazil’s soybean crop is planted, compared to 68% on the five year average.

Corn was fractionally mixed, nearly unchanged. The USDA says 90% of corn is harvested and parts of the Cornbelt could wrap within the next few days. Commercial demand is limiting losses, but there is plenty of corn available. The USDA’s next set of supply, demand, and production numbers is out December 12th. Ethanol futures were lower with weekly EIA production and supply numbers Wednesday. China says value added tax exemptions on DDG imports will start December 20th. Corn’s also watching the planting pace in South America. According to AgRural, 63% of Brazil’s corn crop is planted, compared to 65% on average.

The wheat complex was modestly higher on commercial and technical buying. 88% of U.S. winter wheat has emerged, but acreage will be a question mark until the January USDA small grains numbers. The fundamentals are bearish, especially on the global supply side of things, but wheat is viewed as a good value. Forecasts have more generally dry weather for winter wheat growing areas in the southern Plains, but that’s not unusual for this time of year and that probably won’t be a big issue until the crop emerges from dormancy. Recent rainfall in the eastern Midwest has given the soft red winter crop a good start before heading into dormancy. Markets will be closed Thursday for Thanksgiving, with an early finish on Friday. Tunisia is tendering for 92,000 tons of milling wheat.