Market News
More weather pressure for corn, soybeans, wheat
Soybeans were sharply lower on commercial and technical selling. Most forecasts have drier weather in key growing areas of Brazil, allowing harvest to pick up steam, and improved rainfall for much of Argentina, which will help with development. Argentina’s Ministry of Agriculture says 11.89 million tons of the 2020/21 crop has been sold, with harvest just a few weeks away. Export demand has slowed just over the halfway point of the current marketing year, with old crop sales down sharply on the week and no reported new crop sales. China was the top purchaser of U.S. soybeans last week, but that was more than offset by a cancellation from unknown destinations. Soybean meal and oil were lower on commercial selling. Meal picked up additional pressure from reports China is scaling back soybean meal usage in feed rations, while oil saw spillover from lower global vegetable oil trade.
Corn was lower on commercial and technical selling, with May through September posting double digit losses. Corn is also watching conditions in South America, particularly the second crop corn planting pace in Brazil, which is dependent on the speed of the soybean harvest. The expected improvement in precipitation for Argentina will benefit corn. The Ministry of Ag in Argentina says 19.1 million tons of the 2020/21 has already been sold. Corn is getting ready for widespread U.S. planting, largely ignoring the early delays in parts of the southern Corn Belt and Delta, at least for now. The USDA’s prospective planting numbers are out on the 31st, along with quarter stocks data. China bought 696,000 tons of old crop U.S. corn, the third day in a row with a sale, for a running total of 3.076 million tons. China had not made an announced purchase of U.S. corn since January 29th. That comes amid concerns about livestock feed demand from China and talk Beijing is phasing corn out of some feed rations due to high prices. China was the biggest buyer of old crop U.S. corn last week, but unknown destinations canceled on more than a million tons. Mexico led the way for new crop U.S. corn sales. Sorghum sales were up on the week, with purchases by China able to offset a cancellation by unknown. Ethanol futures were unchanged.
The wheat complex was lower on speculative and technical selling. This latest round of precipitation should benefit most of the U.S. winter wheat crop, especially dry parts of the southern U.S. Plains. Portions of the northern U.S. Plains and Canada will need more moisture ahead of spring wheat planting. Export sales were up on the week with less than a quarter remaining in the current marketing year, with the 2020/21 pace just ahead of 2019/20. White wheat sales are well ahead of any other listed variety. China was the biggest buyer of U.S. wheat last week, with the report also featuring a sizable cancellation by unknown destinations. China’s reported cuts for corn and bean meal in livestock feed rations is expected to benefit wheat feed demand, something the USDA hinted at in the most recent supply and demand report, with the next set of numbers out April 9th. For now, the global supply outlook remains bearish. DTN says Tunisia has two open tenders for optional origin durum – one for 115,000 tons and the other for 42,000 tons.
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