Market News

Corn firm, soybeans can’t sustain modest gain

Soybeans were modestly lower on fund and technical selling, unable to follow through on the early gains. Recent rainfall has likely helped the crop, but development remains slow and the condition rating is historically low for this time of year. The USDA’s next set of supply, demand, and production estimates is out September 12^th. Beans are also waiting to see what’s next in the trade dispute with China. Chinese export demand has slowed with the continued spread of African Swine Fever and when China does buy beans, it’ll likely be from South America, even if U.S. beans are the most competitively priced. Weekly export sales were bearish, with a big cancellation on old crop by unknown destinations, but China did buy a routine amount of new crop U.S. beans and it was a good week for old crop shipments. Soybean meal and oil were lower, following beans.

Corn was fractionally higher on short covering and technical buying after an up and down day. The trade expects at least some improvement in conditions following the recent rain. More rain is expected in many areas this week, but some areas are experiencing flooding because of the heavy precipitation. This week’s results from a major crop tour have been mixed, with generally lower yields expected in the next set of USDA projections, out next month. Export demand is slow and domestic demand is showing signs of declining, for both feed and fuel. Weekly export numbers were bearish, with the current marketing year wrapping up August 31^st. Ethanol futures were lower. Sorghum exports had a net reduction, also maintaining a bearish pace late in 2018/19.

The wheat complex was mixed, with Chicago and Kansas City up and Minneapolis down. Export numbers continue to be a bright spot, with larger than expected sales last week, but the world supply is big and growing as the global harvest advances. The spring wheat harvest has been slowed down by rain in the northern Plains. Winter wheat harvest activity is all but wrapped up, with most of the remaining acreage white winter and the trade is monitoring pre-planting conditions in the southern Plains. DTN says Japan bought 110,057 tons of food wheat from the U.S. and Canada but didn’t provide a breakdown and Tunisia purchased 92,000 tons of optional origin milling wheat.