Market News

Corn and soybean focus stays on South America

 

Soybeans were modestly higher on commercial and speculative buying, along with spillover from the strength in meal. Forecasts have more generally dry weather in parts of Argentina, further limiting yield potential, along with harvest delays in central Brazil. Brazil, overall, remains on pace for another very large crop. AgRural says Brazil’s bean sales have increased because of the damage in Argentina. Safras e Mercado says 58% of beans in the top production state of Mato Grosso are harvested, along with 27% in the second biggest state, Parana. November beans hit a new contract high during the session. Flooding in the eastern Midwest is hampering barge movement, also a factor for corn. Soybean meal was higher on more probable crop loss in Argentina and bean oil was lower on profit taking. The adjustment of product spreads was also a factor.

Corn was modestly higher on commercial and speculative buying. Corn was also watching the dry weather in Argentina, along with second crop planting delays in Brazil. The U.S. will likely pick up some export business – the question is how much. The trade also has an eye on wet weather in the eastern Midwest and dry conditions in parts of the Plains that could impact acreage. Unknown destinations bought 130,000 tons of 2017/18 U.S. corn, the fourth business day in a row with a new sale. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol production and stocks numbers are out Wednesday. A White House brokered meeting between U.S. senators representing corn states and oil states resulted in no immediate changes to the RFS.

The wheat complex was mostly higher on commercial and speculative buying, with May Kansas City hitting a new six month high. The USDA says winter wheat in central and southern U.S. Plains is showing the effects of dry weather, lowering condition ratings again this month, and parts of the eastern Midwest are too wet. The USDA’s next set of state stories is out in late March and weekly state and national crop progress numbers resume in April. Minneapolis was mixed, getting ready for spring wheat planting, with an eye on conditions in the northern U.S. Plains and Canada. Jordan, Tunisia, and Ethiopia all have open optional origin wheat tenders. Australia’s Bureau of Meteorology says sea surface temperatures are warmer and the El Nino/La Nina conditions are expected to go back to neutral in early autumn for the southern hemisphere/early spring in the northern hemisphere.