Market News

Corn and wheat push higher, while soybeans fall

Soybeans failed to hold onto early gains and finished the day lower.  While the USDA lowered production slightly, with no changes to the record yield estimate or harvested area, it was largely near pre-report expectations. New crop ending stocks were down on the month, mostly due to lower old crop carryout caused by strong crush demand, in addition to that reduction in production. Remnants of Hurricane Francine moved northward, and rain fell in the Northern Plains, with more on the way.  The trade is also looking ahead to Monday’s crop condition update from the USDA.

Corn continued its rally to finish higher for a third consecutive day.  There are concerns about probable harvest delays and potential quality impact in some southern U.S. growing areas as Francine moved inland. In other parts of the world, there are development concerns in Brazil and Argentina as that region remains much too dry.  Corn is again monitoring global issues in the Black Sea region as a Russian missile strike hit a Ukrainian vessel in route to Egypt. 

The wheat complex had a strong day on Friday, closing higher in five of the last six days.  Support came from a stronger Paris milling wheat contract and ongoing tensions in the Black Sea Region.  In addition, there are expanding drought conditions in the Southern U.S. Plains, Russia, and Eastern Ukraine.  The U.S. dollar fell on Friday, which helps wheat’s ability to compete in the global market.