Market News

Soybeans, corn down, despite slow harvest

Soybeans were modestly lower on fund and technical selling, unable to follow through on early gains. Preliminary trade discussions with China are reportedly occurring ahead of the G20 later this month in Argentina. The weekly export inspections report continues to show the impact of China’s tariff. Unknown destinations bought 276,732 tons of 2018/19 U.S. beans Tuesday morning. The trade’s also continuing to monitor planting in South America and U.S. harvest activity. The USDA says 88% of U.S. soybeans are harvested, compared to 93% a year ago and the five-year average of 93%. Soybean meal and oil were lower, following beans.

Corn was modestly lower on fund and technical selling. Even with more recent harvest delays, the trade was expecting this year’s harvest to be about 90% complete in the weekly update, delayed a day by the observance of Veteran’s Day. As of Sunday, 84% of corn is harvested, compared to 81% last year and 87% on average. Conditions in most of the Cornbelt look cold, but generally clear. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol numbers will be out Thursday. Weekly export inspections were bullish, down on the week, but staying well ahead of the previous marketing year’s pace. The European Commission says corn imports by the European Union this marketing year are 6.6 million tons, up 024% on the year, a big chunk of that from Ukraine. Corn is also watching planting in South America, expecting more competition from Brazil.

The wheat complex was lower on fund and technical selling. The complex is watching the tail end of winter wheat planting, along with global crop conditions. According to the USDA, 89% of winter wheat is planted, compared to the usual pace of 94%, and 77% of the crop has emerged, compared to 83% typically this time of year. 54% of the crop is in good to excellent condition, up 3% on the week. New U.S. and world supply and demand estimates are out December 10th. Japan is tendering for 120,226 tons of food wheat from the U.S., Australia, and/or Canada. Weekly export inspections continued their bearish pace, with the current marketing year close to halfway complete. Weekly export sales data is pushed back until Friday. According to wire reports, Brazil is expected to import more wheat in 2019 than in 2018. Allendale says Russia is in discussions with China to get more Russian regions approved for wheat exports.