Market News

Soybeans supported by expected meeting with China

Soybeans were sharply higher on commercial and technical buying. The big source of support was the probability of the resumption of trade talks with China, possibly as soon as next week. The talks are expected to be lower level and topics haven’t been released, but any sign of public progress is seen as encouraging. AgriCensus says China has recently increased purchases of soybeans from Argentina. The broader market was also a positive influence during the session. Beans are also watching the weather during key late stages of development. Weekly exports were bearish, but the monthly NOPA crush numbers were solid and Mexico bought 154,404 tons of new crop U.S. beans. Soybean meal and oil followed beans higher.

Corn was higher on commercial and technical buying, along with spillover from beans and the outside markets. Weekly export numbers were mixed, with bearish old crop sales and strong new crop exports. The current marketing year for corn, and soybeans, ends August 31st. Corn is watching the weather, with crop stress reported in some key U.S. growing areas because of drought or near drought conditions ahead of a major crop tour next week. The USDA’s FSA has declared 25 Missouri counties and 1 Iowa county as primary disaster areas. Early harvest activity is probable in parts of the Cornbelt. Ethanol futures were higher. Allendale says Argentina’s corn acreage could hit a record high.

The wheat complex was higher on commercial and technical buying. Weekly export sales were a new marketing year high and Iraq bought 200,000 tons of U.S. hard red winter for 2018/19 delivery. DTN says Iraq also picked up 100,000 tons of wheat from Canada. Still, physical shipments remain very slow, slower than what’s needed to meet USDA projections. The trade is watching weather in the northwestern U.S. Plains, western Canadian Prairies, Europe, the Black Sea region, and Australia, with the possibility of further crop loss potentially opening the door for more U.S. export sales. Jordan purchased 60,000 tons of optional origin milling wheat and has an open tender for another 120,000 tons.