Market News

Corn ends week on a firm note

Soybeans were modestly lower on profit taking and technical selling, but still posting week to week gains thanks to Thursday’s strength. Harvest pressure was a factor but there is the potential for near term delays in some areas. Unknown destinations bought 100,000 tons of new crop U.S. bean meal. The new marketing year for soybean products starts October 1st. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. The tariff concerns with China remain, but expectations are for Beijing to buy at least some U.S. beans between October and February, even if it’s resold from another buyer and not purchased directly from the U.S. AgriCensus and the European Commission report increased purchases of U.S. soybeans by the European Union because of lower prices.

Corn was modestly higher on commercial and technical buying, closing in positive territory for the third consecutive session. Corn was also watching harvest activity and probable near-term delays in parts of the Midwest and Plains. Unknown destinations bought 121,700 tons of new crop U.S. corn, following up on Thursday’s purchase by Mexico. U.S. export sales are ahead of the previous marketing year’s pace and domestic demand is expected to stay solid in 2018/19, leaving fundamentals, for now, mostly neutral. Ethanol futures were higher. The USDA’s attaché in Mexico estimates 2017/18 corn production at 27.4 million tons and projects 2018/19 at 26 million. 2017/18 sorghum is pegged at 4.545 million tons with 2018/19 at 4.5 million, both lower than the USDA’s current official guesses. The latest round of NAFTA renegotiations with Canada ended with no agreement.

The wheat complex was modestly lower on profit taking and technical selling, but the most active contracts did move about $.10 higher for the week. Rain in parts of the southern Plains will likely delay winter wheat planting to some extent, but the soil moisture is welcome. The trade was also watching winter wheat planting conditions in Europe and Russia, along with development weather in Australia. According to the European Commission, via AgriCensus, E.U. wheat imports are up 25% on the year because of tight supplies. The USDA’s attaché in Mexico sees 2018/19 wheat production at 2.9 million tons, up 1 million from the most recent official estimate because of higher planted area. According to wire reports, IKAR lowered its 2018 production estimate for Russia to 69.2 million tons and SovEcon reduced its export outlook to 33 million.