Market News

Higher start to the week for soybeans, corn, wheat

Soybeans were modestly higher on short covering and technical buying. There’s widespread rain in the forecast for most of the region, delaying planting but boosting soil moisture. The USDA says 66% of U.S. soybeans are planted, compared to the five-year average of 53%, with 34% emerged, compared to 23% on average. The Philippines bought 145,000 tons of old crop bean meal Monday morning. Still, that wasn’t enough to support bean meal futures, which were down on product spread trade with soybean oil. Soybean oil picked up additional support from biofuels demand expectations. Soybean export inspections were below a week ago, but just above a year ago, primarily to Mexico and Egypt. Unless there’s a correction by the USDA, China was entirely absent, with most U.S. beans purchased by Beijing already either shipped or hung up by either shipping issues or tariff related tensions. China’s General Administration of Customs says April soybean imports were 6.08 million tons, down 29% on the year. Recent heavy rainfall has delayed harvest activity in parts of Argentina.

Corn was higher on short covering and technical buying. Corn is watching planting, expecting numerous delays over the next week. As of Sunday, 78% of U.S. corn is planted, compared to 73% on average, with 50% emerged, compared to the normal rate of 40%. However, if the hot, dry summer forecasts for parts of the Corn Belt materialize as expected, that soil moisture would turn out to be long-term positive for development. Corn is also monitoring harvest activity in Argentina and second crop development conditions in Brazil. Overall demand continues to be solid. That was reflected in the weekly export inspections report, with the totals up solidly on both the week and the year, mainly to Mexico and Japan. The pace of inspections continues to run well ahead of what’s needed to meet projections for the current marketing year.

The wheat complex was higher on short covering and technical buying. Wheat found support around current price levels, with help from a lower move in the dollar. U.S. winter wheat ratings are solid, with spring wheat planting faster than average. While rain-related spring wheat planting delays in the northern U.S. Plains and Canadian Prairies are probable, the soil moisture is welcome. There are some chances for frost this week in parts of the North American spring wheat growing region. For winter wheat, 52% of the crop is called good to excellent, 2% below a week ago, with 64% headed, compared to 58% most years in mid-to-late May. For spring wheat, 82% of the crop is planted and 45% has emerged, both ahead of their respective typical rates. The trade’s also monitoring planting and development conditions in Argentina, Australia, China, Europe, Russia, and Ukraine. Export inspections were higher than both the prior week and last year, with Japan and Mexico topping the list. The USDA’s updated supply, demand, and production numbers are out June 12^th.