Market News

Dollar pressures grains, oilseeds

 

Soybeans were lower on fund and technical selling, along with the higher dollar. Weekly export sales were larger than expected and unknown bought 280,000 tons of 2015/16 U.S. beans. Past that though – aside from some rain delays, South America’s harvest is going well. Currently, Brazil’s soybean harvest is 60% finished and Argentina is just getting underway. Agroconsult has raised its’ 2015 Brazilian production estimate to 95.8 million tons. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on fund and technical selling, in addition to the higher trade in the dollar. Weekly export sales were solid and it was a good week for physical shipments. Early fieldwork delays are continuing, with more rain around the Ohio Valley and southeastern Cornbelt. Ethanol futures were lower. Agroconsult now sees Brazil total 2015 crop at 79.4 million tons.

The wheat complex was lower on fund and technical selling, along with spillover from the dollar. There’s more rain in the forecast for the soft red winter region and overnight storms in Oklahoma did hit hard red growing areas. However, the fundamentals remain very bearish due to the large available world supply and slow demand for U.S. wheat. Weekly export numbers were bearish, with sales a new marketing year low. South Korea bought 50,000 tons of optional origin feed wheat.