Market News

Lower winter crop rating, dollar boost wheat

Soybeans were higher on short covering and technical buying. 66% of U.S. beans are planted, ahead of average, but with widespread rain delays in the forecast over the next week or so. Recent heavy rainfall has delayed harvest and impacted crop quality in parts of Argentina. The USDA’s updated supply, demand, and production report is out June 12^th. Soybean meal was up on oversold signals, while bean oil ended a two-sided session firm on the higher moves in meal and beans. Export demand for U.S. bean meal has declined recently, with supplies at a premium to Argentina and Brazil.

Corn was higher on short covering and technical buying. 78% of U.S. corn is planted, with more rain in the forecast for parts of the Corn Belt into late this month. That will delay the tail end of planting in some key growing areas, but the soil moisture will generally be welcome. In South America, corn is assessing harvest delays and quality issues due to heavy rainfall in portions of Argentina, along with a warmer, drier weather pattern potentially impacting second crop production in areas of Brazil. Corn also saw ongoing support from the overall solid demand outlook, with the U.S. Energy Information Administration’s weekly ethanol production, stocks, and export report out Wednesday.

The wheat complex was higher on speculative and technical buying, in addition to the lower trade in the dollar during the session. The USDA’s winter wheat rating dipped and there are disease concerns for both hard and soft red winter wheat. Near-term spring wheat planting delays are probable in parts of the northern U.S. Plains and Canadian Prairies, but most of that region has welcomed the wetter, cooler weather pattern after an extended spell of hot, dry, and windy conditions. The trade’s also watching expanding drought in parts of China, along with planting and development weather in Argentina, Australia, Europe, Russia, and Ukraine.