Market News

Commercial demand supports soybeans, wheat

Soybeans were higher on fund and commercial buying. Demand remains strong and while there’s some talk of increased acreage due to corn delays, it’s still early. The USDA expects its first soybean planting estimate of the growing season in next week’s crop progress report. Brazilian truckers are meeting with government officials this week and it could lead to another round of work stoppages. Soybean meal was higher on commercial buying and bean oil was mixed, mostly firm, in consolidation trade.

Corn was lower on fund and technical selling. The trade’s expecting decent planting progress over the past week, even with the heavy weekend rainfall. The USDA reports 9% of the U.S. corn crop is planted, compared to 2% a week ago and the five year average of 13%. Out of the 18 major production states, only four are at or ahead of the average pace. Ethanol futures were higher. According to Ukraine’s Ag Ministry, corn acreage could be down 8% on the year due to a lack of input capital. Most of that acreage is expected to go into sunflowers.

The wheat complex was higher on commercial and technical buying. The southwestern Plains got rain over the weekend, with lighter amounts further north. For winter wheat, 16% of the crop has headed, compared to 15% on average, and 42% of the crop is in good to excellent condition, unchanged on the week. For spring wheat, 36% is planted, compared to 19% on average. Egypt bought 300,000 tons of wheat, 180,000 tons from France and 60,000 tons each from Romania and Russia.