Market News

Wheat, soybeans supported by weather concerns

Soybeans were higher on commercial and technical buying. Forecasts have hot, dry weather over the next several days in the Plains and Midwest. Weekly export numbers were neutral to bearish, with supply and demand numbers out Friday at Noon Eastern/11 AM Central. China’s General Administration of Customs says May soybean imports were a monthly record at 9.59 million tons. Soybean meal and oil were higher, following beans. According to CONAB, Brazil’s soybean harvest has wrapped up in the major growing states, with production seen at 113.92 million tons. The Buenos Aires Grain Exchange says 90.6% of Argentina’s soybean crop is harvested with production seen at 57.5 million tons.

Corn was higher on commercial and technical buying. Contracts closed below the session highs, but have recently established new multi-month highs on acreage and weather concerns. Weekly export numbers were bullish. Ethanol futures were lower. CONAB says the harvest of Brazil’s first corn crop has wrapped up, with the estimated total of 30.31 million tons, and harvest of the second crop is just getting underway and expected to hit 63.52 million tons. The Buenos Aires Grain Exchange says 42% of Argentina’s corn crop is harvested with production expected to be 39 million tons.

The wheat complex was higher on commercial and technical buying. The hot weather in the Plains could stress spring wheat, but should help early winter harvest activity stay ahead of average. New winter wheat production numbers are also out Friday at Noon Eastern/11 AM Central. Japan bought 81,115 tons of U.S. food wheat, along with 55,075 tons from Canada and 23,420 tons from Australia. CONAB expects a year to year reduction in wheat acreage for Brazil, citing the quality of the previous season’s harvest. The Buenos Aires Grain Exchange says 21.4% of Argentina’s wheat crop is planting, noting a significant amount of acreage may not get planted because of flooding.