Market News

Planting delays, demand questions move markets

Soybeans ended the trading session slightly higher in most months because of concerns about late planting and whether yields will fall because of it. The latest crop progress report says soybean planting was just 77 percent finished – well under the 93 percent average pace. With more rain on the way, DTN cites analysts who think even soybean acres could be lower and a yield drag on soybeans is likely. There are still 19.7 million intended soybean acres unplanted. Gains were limited by hurting demand. U.S. soybean exports are down 26 percent from last year. Positive for soybeans is news that President Trump and President Xi plan to talk about trade at the G-20 Summit.

Corn ended the Tuesday trading session lower. The planting pace of 92 percent is better than expected but well behind normal. There’s confusion over how the planting percentage is computed. The ability to determine how much of a farmer’s intended acreage will not be planted is leading to questions of accuracy. The uncertainty led to some selling Tuesday. The 92 percent reported planted leaves 7.4 million acres yet to plant. DTN says it appears the trade sees from 6 million to 9 million corn acres that will be prevented from being planted this year.

All three major wheat exchanges ended lower Tuesday. Winter wheat harvest is only eight percent complete, compared to 20 percent normally. Wheat is in the best condition since 2010, at 64 percent good to excellent; spring wheat is 77 percent good to excellent. Early yields in hard red winter wheat harvest are good, but Oklahoma and Kansas face more heavy rains, which could hurt quality. Meanwhile, Australia is lowering its export projection because of drought.