Market News

Soybeans, corn weak on commercial pressure

 

Soybeans were modestly lower on commercial and technical selling, with the nearby July and August contracts closing below $10 per bushel. The trade is watching for any new developments in the latest round of trade talks with China. NAFTA renegotiations were also ongoing Thursday. Unknown bought 132,000 tons of old crop U.S. beans, but the weekly numbers were bearish as demand remains slow, at least partially because of those tensions with China. According to U.S. Representative Cheri Bustos (D-IL), China has started increasingly sourcing beans from Russia. However, China has slowed down purchases as poor margins by pork producers limit feed demand. Allendale says the U.S. recently sold 60,000 tons of U.S. beans to Argentina, which is trying to fill domestic crush needs after weather damage. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn closed modestly lower on commercial and technical selling. Most forecasts have more near-term rain in parts of the Midwest and Plains, delaying planting but recharging soil moisture levels. Many analysts expect solid week to week planting progress in next Monday’s crop progress and condition update. The weekly export numbers were neutral, with good sales and slow shipments. With the recent increase in demand, 2017/18 sales have caught up to 2016/17. Ethanol futures were lower. Forecasts over the next week for Brazil’s second corn crop generally have improved chances of rainfall, but the crop is in key development phases and will need consistent precipitation.

The wheat complex was modestly higher on commercial and technical buying. The fundamentals remain bearish, but there was new buying interest at these price levels, following through from Wednesday. Most forecasts do have more near-term rain in dry parts of the southwestern U.S. Plains, while parts of the northwestern U.S. Plains and soft red winter region could use more ahead of summer. Weekly export numbers were bearish, with just a few weeks left in wheat’s 2017/18 marketing year. South Korea’s Major Feedmill Group bought 130,000 tons of feed wheat. Ethiopia is tendering for 200,000 tons of milling wheat and Jordan is in the market for 120,000 tons of milling wheat.