Market News

Corn ends bearish week with more losses

Soybeans were modestly higher on commercial and technical buying, still ending the week modestly to sharply lower. Contracts bounced back a little from Thursday’s meltdown, watching tight near-term supply and overall solid demand fundamentals, but gains were limited by losses in corn and bean meal. Soybean meal was down and soybean oil was up on the adjustment of product spreads. The trade is also monitoring planting and development conditions in the Midwest and Plains. The USDA’s weekly crop progress and condition numbers are out Monday at 4 Eastern/3 Central. The trade will also be waiting to see what kind of impact the I-40 bridge closure had on weekly export inspections, out Monday afternoon. The bridge has reopened, allowing barge traffic to resume, but there was likely at least some delay. Export demand may have slowed down for U.S. beans because of Brazil, but the overall pace remains very close to the USDA’s target for the marketing year.

Corn was sharply lower on commercial and technical selling, cementing a sharply lower weekly finish. Corn is also watching the fundamentals, along with crop weather in the U.S. and Brazil. There is a chance for improved rainfall in parts of Brazil, but some damage has been done and the totals and coverage are uncertain. The USDA did lower the production estimate for Brazil this past Wednesday, with another reduction possible in the next set of supply and demand estimates, out June 10^th. Interior U.S. cash basis levels remain strong. China bought 1.36 million tons of new crop U.S. corn, the sixth business day in a row with a sale of new crop U.S. corn, mostly to China, with a running total of 5,271,600 tons. The new marketing year for corn gets underway September 1^st. Ethanol futures were unchanged. SovEcon estimates Russia’s 2021 corn crop at 14.4 million tons.

The wheat complex was mixed, closing out the week with significant losses in the July contracts. Most forecasts have at least some rain in winter wheat growing areas, while the spring wheat region will mostly stay dry, from the northern and northwestern U.S. Plains into Canada. That said – drought or near drought conditions will continue to be an issue in portions of the central and southern U.S. Plains, even with this anticipated precipitation. A major U.S. winter wheat crop tour starts next week. Global crop conditions generally look good. SovEcon raised its production projection for Russia by 1 million tons to 81.7 million. France’s Ag Ministry says 79% of that nation’s soft wheat crop is rated good to excellent, unchanged on the year. Ukraine’s Ag Ministry estimates the total 2021 grain crop at 75 million tons, up 10 million from 2020. DTN says Japan bought 122,180 tons of food wheat from the U.S., Australia, and Canada, while Taiwan is tendering for 89,425 tons of U.S. milling wheat.