Market News

Soybeans, corn post more losses

Soybeans were lower on fund and technical selling, with July and November notching multi-month lows. The trade continues to wait for public progress in talks with China and the resumption of face to face negotiations next week, while watching harvest activity in South America. Brazil is close to wrapping up and Argentina is more than a third of the way there. U.S. soybean planting underway at 1% and the industry is watching corn and spring wheat planting and the possible shift over to soybeans if delays continue. Soybean meal and oil were lower, following beans. A big question mark connected to China is African Swine Fever and while Chinese purchases of U.S. soybeans have improved, Beijing hasn’t picked up the expected totals.

Corn was lower on fund and technical selling, with July hitting another fresh contract low. Corn is also waiting for what’s next with China and watching conditions in South America, expecting big crops. As of Sunday, 6% of the U.S. corn crop is planted, compared to the five-year average of 12%. Most forecasts remain mixed, so planting progress is expected to remain mixed heading into May. Traders continue to hold a record net short position. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol production and stocks numbers are out Wednesday. Ukraine’s Ag Ministry says 12% of that nation’s corn crop is planted. Thanks to last year’s bigger crop, Ukraine has become a bigger competitor on the U.S. export market.

The wheat complex was mostly modestly higher. Contracts are oversold after the recent run to new lows, but the fundamental outlook remains bearish with the next set of USDA supply and demand numbers out May 10^th. Spring planting is way behind average, while overall, the winter wheat crop is in much better shape than a year ago at 62% good to excellent, double last year’s level. It’s a tale of two regions, hard red winter is in great shape, but even with some week to week improvement, soft red winter is in its worst condition in more than a decade. DTN says Algeria is tendering for 50,000 tons of durum. Updated planting numbers for Canada are out Wednesday.