Market News

Soybeans, corn recover some losses

Soybeans were modestly higher on short covering and technical buying, recovering a small part of Thursday’s drop. The trade is watching weather in South America, with concerns in parts of Argentina and Brazil. Weather forecasts have changed for those critical export competitors, throwing some uncertainty into the mix after CONAB lowered its outlook for Brazil’s crop slightly. Brazil’s harvest is reportedly just over 2% complete, faster than average. There wasn’t much public progress in talks earlier this week, but Cabinet level trade discussions with China are expected to occur at the end of the month. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was modestly higher on short covering and technical buying, with contracts due for at least a modest bounce. Corn is also watching conditions in South America and waiting for developments in trade talks. Corn is also monitoring U.S. weather ahead of planting. Widespread activity is still a ways off, but the recent recharge in soil moisture is expected to be broadly beneficial. Ethanol futures were higher. With weekly export sales numbers on hiatus because of the shutdown, the export inspections report should take on more importance. According to reports, because of a drought damaged crop, South Africa had to buy corn from Brazil. The trade is also watching Ukraine’s corn sales.

The wheat complex was modestly higher on short covering and technical buying. There has been more talk of new export interest, but nothing’s been reported because of the partial shutdown of the federal government. Several key crop reports that were originally scheduled for Friday have also been delayed by the shutdown. Along with new supply and demand numbers, the USDA was also set to reported winter wheat acreage and the 2018 corn and soybean production totals. Jordan is tendering for 120,000 tons of optional origin milling wheat and Yemen is in the market for 64,700 tons of soft wheat.