Market News

USDA numbers push March corn to new low

 

Soybeans were higher on commercial and technical buying. The USDA’s 2017 crop estimate was down from December, but still a new record high, with a lower average yield projection at least partially offset by record harvested acreage. The production guess for Brazil was up on the month, while Argentina was slightly lower. In between now and the next set of numbers on February 8th, La Nina’s impact on South American production will continue to be watched very closely. AgRural’s new estimate for Brazil is 114.0 million tons. Soybean meal was higher and bean oil was mostly weak on the adjustment of product spreads. Weekly export sales numbers will be out Friday. According to wire reports, China bought 9.55 million tons of soybeans in December.

Corn was lower on commercial and technical selling, with March hitting a new contract low. The USDA’s 2017 crop total was up from last month with a new all-time high for the average yield and a lower harvested yield number. U.S. ending stocks were also above a month ago, mostly on higher production and lower feed use, and there were no changes to the South American numbers – yet. A long term drier pattern in Argentina along with hotter temperatures would have an impact on production and global trade. Ethanol futures were higher. Weekly ethanol numbers will be delayed until Thursday with commodity markets and most USDA and government offices closed Monday for Martin Luther King Jr. Day. Unknown destinations bought 320,000 tons of 2017/18 U.S. corn.

The wheat complex was lower on commercial and technical selling, erasing the week’s gains and backing off from the recent multi-week highs. Winter wheat acreage was just a little bit lower than last year and the second lowest on record, but still bigger than what a lot of analysts were expecting ahead of the report. Winterkill and drought concerns remain on the back burner with the USDA updating crop conditions monthly until weekly reports resume in April. Wheat ending stock were up on the month because of slow demand. The USDA’s next set of supply and demand estimates is out February 8th. DTN says the USDA’s Commodity Credit Corporation bought a total of 86,970 tons of soft wheat for Yemen and 13,450 tons of hard red winter for Kenya.