Market News

Weather supports wheat, soybeans up on new export demand

 

Soybeans were higher on commercial and technical buying, with the most active months gaining about $.45 for the week. China bought U.S. beans and optional origin, 312,000 tons and 165,000 tons, respectively, both new crop, with trade negotiations expected to continue next month. For now though, Brazil is expected to maintain a big share of the export market. Transport delays for a couple of Brazil’s key ports continue, as stevedores joined a strike by truckers, despite an agreement on diesel prices between most of the trucker unions and the government. Soybean meal was higher and bean oil was lower on commercial spread adjustments. Argentina’s Ag Ministry currently projects soybean production at 36.6 million tons, down 1 million from the previous estimate.

Corn was modestly higher on short covering and technical buying, along with spillover from beans and wheat, pulling contracts to a small weekly gain. Most forecasts have more dry weather for Brazil’s second corn crop, the source of most of their exports, while U.S. planting conditions generally look good. Near term, parts of the Plains and Midwest will see some delays, but the soil moisture will be welcome in many areas. Parts of the central Midwest could use the precipitation as the crop emerges. Ethanol futures were firm. Even with lower than a year ago placements, the USDA’s cattle on feed report looks nominally bullish for feed ingredients.

The wheat complex was higher on commercial and technical buying, in addition to the lower trade in the U.S. Dollar index. Contracts remained near the recent multi-month highs, with Kansas City and Chicago leading the way up. Near term forecasts have more dry weather in parts of the U.S. Plains, Australia, and Canada, and there are uncertainties about parts of Europe and the Black Sea region. At least in the southwestern U.S. Plains, the drought or near drought conditions could stock around through the summer ahead of a possible El Nino event in fall. The current U.S. marketing year ends next week with the next set of supply, demand, and production numbers out June 12th. Commodity markets are closed Monday for Memorial Day, reopening for the overnight session heading into Tuesday.

 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!