Market News

Corn and soybeans lower on good crop weather

Soybeans closed lower. Favorable weather is a big factor. In the western Midways, hot and dry temperatures are likely stressing beans – but more moderate temperatures and mostly dry weather in the eastern Midwest have been helpful for the crop. China bought close to 400 million tons of U.S. beans for delivery next marketing year – following several big purchases last week. It’s unclear how much demand U.S. beans will get with the trade dispute still on with China. The good to excellent crop rating, at 72%, is in step with the week before in today’s crop progress reports because of rain in many areas.

Corn closed lower. Warm weather over the weekend is leading into mostly dry weather for much of this week with moderate rain expected from southern Minnesota to Oklahoma. USDA’s good to excellent crop rating for corn is slightly lower than the week before at 71%. Demand is still suffering from the effects on transportation from the coronavirus pandemic. Several cities in China and the southern U.S. are reporting an increase in cases. While corn demand has improved from earlier in the pandemic, continued improvement in ethanol production and slaughter levels is needed.

Wheat was mixed. Wheat prices continue to trade under pressure as the winter wheat harvest makes steady progress into Kansas. The seven-day forecast remains dry for most of the southwestern U.S. Plains. It is forecast to be hot and dry for much of the next week in the southwestern U.S. The good to excellent rating for spring wheat is expected to stay. Severe weather hit southern Alberta over the weekend with hail damage but damage assessments aren’t known. Europe, Ukraine and southern Russia had scattered showers.