Market News

Wheat, soybeans hit hard by rain

 

 

Soybeans were sharply lower on speculative and technical selling. Parts of Argentina got rain over the weekend, aiding pod filling in some areas, but too late to help in others, and harvest conditions in most of Brazil look good with the trade expecting another large, if not record, crop. According to AgRural, 58% of Brazil’s soybean crop is harvested. The trade also has an eye on U.S. weather, with prospective planting numbers out at the end of the month. Quarterly stocks numbers are also out on the 29th. Soybean meal was sharply lower on commercial selling. Bean oil was firm on commercial buying.

Corn was lower on speculative and technical selling. Corn was also watching weather in South America, in addition to U.S. conditions with planting underway in parts of the southern Cornbelt. Big chunks of Argentina remain in drought or near drought conditions, but after a slow start to planting, Brazil’s second crop appears to be in good shape. The second crop is the larger of the two and the source of most of Brazil’s exports. Unknown destinations bought 115,000 tons of 2017/18 U.S. corn and Japan purchased 206,000 tons for 2018/19 delivery. The new marketing year for corn starts September 1st. Ethanol futures were lower. Corn and ethanol are waiting for more talks regarding the Renewable Fuel Standard between corn state senators, oil state senators, and the White House.

The wheat complex was sharply lower on speculative and technical selling. Kansas City led the way, pressured by weekend rain in the Plains, even if that precipitation did miss some of the driest parts of the region. The Midwest is expected to see more coverage during the early part of the week. Soft red winter is expected to emerge from dormancy in generally better condition than hard red winter. Still, the U.S. grows a relatively tiny percentage of the world’s wheat crop and the overall fundamental outlook remains bearish, with new USDA supply and demand numbers out April 10th. Japan is tendering for 127,338 tons of food wheat from the U.S. and/or Canada.