Market News

Corn clings on to slight gain

Soybeans were lower on fund and technical selling. There have been conflicting signals on trade from China, but negotiations are still scheduled to resume later this month. The trade is also watching U.S. weather, with slower than average development and dry weather in some areas, but generally non-threatening temperatures. Weekly export sales and shipments were bearish, with a net reduction for old crop sales after cancellations by China and unknown destinations, while new crop sales were relatively light. Planting is going to get started soon in South America, with a probable increase in planted area for Brazil. Soybean meal and oil were lower, following beans. The National Oilseed Processors Association says member firms crushed 168.093 million bushels of soybeans for July, about 9 million more than the average pre-report guess, up sharply from June’s near two-year low, and record for the month.

Corn was modestly higher on short covering and technical buying. It was an up and down day for corn, watching the weather, with a drier forecast for parts of the Eastern Corn Belt. A major private crop tour is scheduled to get underway on Monday the 19^th. A tour ongoing this week has varied yields, when compared to the most recent USDA projections. The weekly export numbers were bearish, with about two weeks left in the marketing year. Increased export competition from Argentina, Brazil, and Ukraine has taken a toll on sales. The Rosario Grain Exchange expects planted area to be up 7% this year, while the Argentine peso hit a record low this week, canceling out some of the effects of the drop in the U.S. corn price. Ethanol futures were higher.

The wheat complex was mixed with Kansas City up and Chicago and Minneapolis down. Exports were bullish but the pace is expected to slow down as the world harvest advances and the global supply remains ample. U.S. wheat is priced competitively, but freight costs have been a stumbling block. The Rosario Grain Exchange projects Argentina’s crop at a record 21.5 million tons and Strategie Grains sees the European Union’s soft wheat crop at 142.9 million tons, up 12% on the year if realized. The trade is also watching U.S. winter and spring wheat harvest activity. The winter harvest should wrap up shortly, while the spring harvest is expected to see delays in some areas. DTN Says Egypt is tendering for 60,000 tons of milling wheat.