Market News

Soybeans, corn end higher on wet weather concerns

Soybeans were higher all of Monday’s trading session. July soybeans had the highest close in two months, according to DTN, with planting concerns supporting the market. The higher close is because of persistent rain and the forecast for more. On the demand side, the April soybean crush number from Dow Jones is down 4 percent from a year ago. Soybean oil stocks at the end of April were down 24 percent from a year ago. Soybean oil had its highest close in more than a month because of that. Soybean export inspections were less than what’s needed to reach USDA’s marketing year export goal. Soybean exports are trying to find footing without China’s full participation.

Corn was up and down Monday, ending the session higher. Planting prospects have dimmed. Heavy rain fell across the Eastern Corn Belt over the weekend, adding to corn acreage concerns. There’s more rain in the forecast. The extended forecast is looking warmer and drier toward the end of June. One of the bearish sides of the current corn rally is that higher U.S. prices are making export sales more difficult. Export inspections for corn are less than what’s needed for USDA to reach its export projection this marketing year.

All three major wheat exchanges were higher at one point in the session but ended with Chicago higher; Kansas City and Minneapolis lower. The bullish factor came from stronger row crops, and continuing concern about quality as rain continues to fall over both HRW and SRW wheat areas. Fundamentally, however, global supplies are creating a bearish scenario. The USDA is expecting a record world wheat crop. Wheat export inspections are on track to meet USDA’s relatively low projection.