Market News

Soybeans, corn post solid weekly gains

Soybeans were mostly lower on spread trade and profit taking but finishing with strong weekly gains in the most active months. Beans took a step back, watching weather during key phases of development. Most forecasts have a cooler but drier weather in many key U.S. growing areas starting next week, potentially stressing the crop, and the derecho caused at least some damage. China bought 126,000 tons of new crop U.S. beans, the eighth business day in a row with a new sale, mainly to China, for a running total of 2.416 million tons. The planned virtual meeting between the U.S. and China to discuss the Phase One trade agreement has reportedly been postponed due to a scheduling issue. Soybean meal and oil were down on profit taking. Ahead of the next member crush report from the NOPA, the average estimate for July is 172.015 million bushels, which would be up on both the month and the year.

Corn was fractionally mixed, mostly firm, while still ending the week solidly higher. Corn consolidated, also watching development conditions, along with early yield results and crop tours while waiting to see how much damage was done by the derecho. The USDA’s crop estimate could be lowered as soon as September, the question is by how much. Early estimates have generally topped out around 400 million tons, with several million acres potentially damaged in Illinois and Iowa alone. In any event, the full extent of the damage won’t be fully known until harvest is over in those areas. Ethanol futures were higher.

The wheat complex was mixed, with Chicago and Minneapolis up and Kansas City mostly weak. The U.S. dollar was down during the session, helping U.S. goods be more competitive on the export market. The global supply fundamentals are bearish, limiting gains, and pulling some months into negative territory late in the session. The September contracts at the three U.S. exchanges did gain on the week. Strategie Grains lowered its wheat production outlook for the European Union and United Kingdom to 128.0 million tons, a decrease of 13% on the year. According to Iraq’s trade ministry, the nation has closed its local buying for the season with a total of more than 5 million tons. The Buenos Aires Grain Exchange says 99% of Argentina’s wheat crop is planted, but with a significant drought threat in northern and central growing areas. DTN says Egypt bought 415,000 tons of wheat from Russia and Pakistan picked up 60,000 tons of wheat, “likely Black Sea origin”, while Pakistan also has an open tender for 1.5 million tons of wheat.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!