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Corn down, soybeans, wheat mixed after USDA numbers
Soybeans were mixed, closing lower for the week. The USDA sees 2024 planted area at 86.1 million acres, but the department says there were nearly 13 million acres unplanted as of the time the report was assembled, which doesn’t include potential switches or replanting due to flooding. Quarterly stocks were larger than expected and up 22% on the year, reflecting some of the impact of slower farmer selling and lank export demand for U.S. beans. New crop demand continues to be slow, especially from China, partially due to uncertainties about trade policy changes after November’s U.S. presidential election. Soybean meal was lower and bean oil was higher, adjusting product spreads. A grain union in Argentina has launched a strike in protest of a labor reform bill.
Corn was lower on fund and technical selling, adding to the week’s losses. U.S. corn acreage was up from March, but that number will change due to recent flooding in the northwest Corn Belt, with the potential for more rain, in addition to the more than 3.3 million acres that remained unplanted when the report was assembled. This report also doesn’t include potential prevent plant acres, which are out in August. Quarterly stocks topped projections with an increase of 22% from last year. Part of that was last year’s record crop and slow farmer selling. France’s AgriMer says 80% of France’s corn crop is rated good to excellent, unchanged on the week.
The wheat complex was mixed, with the most active months at the three U.S. pits slightly lower than the previous week. Total wheat acreage was a little bit smaller than expected with an 8% drop for winter against a 1% rise for spring wheat. The winter wheat harvest is ongoing, while there’s more rain in the forecast and colder temperatures for U.S. spring wheat. Quarterly wheat stocks were 23% above a year ago, despite solid fourth quarter usage. The USDA’s updated supply, demand, and production numbers are out July 12th. France’s AgriMer says 60% of the soft wheat crop is in good to excellent condition, 2% lower than the previous week and the third lowest on record for this time of year.
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