Market News

Solid start to the week for soybeans, corn, wheat

Soybeans were higher on fund and technical buying. Harvest has been delayed in some areas, with forecasts showing more rain later this week in parts of the region. The USDA says 13% of U.S. soybeans are harvested, compared to the five-year average of 8%, and 65% of the crop is dropping leaves, with 64% rated good to excellent, unchanged on the week. Unknown destinations bought 165,000 tons of new crop U.S. bean Monday morning. That followed last Friday’s sale to China, putting the running total for the past two business days to 286,000 tons. China is also still reportedly buying beans from Brazil. Soybean export inspections were up on the week, down on the year, mainly to China and the Netherlands. Soybean meal and oil were higher on the bullish tone in beans. Soybeans are also keeping an eye on weather in South America. Safras e Mercado says 0.5% of Brazil’s soybean crop is planted, compared to the five-year average of 1.6%, with production seen at 171.78 million tons.

Corn was higher on fund and technical buying. Corn is monitoring harvest delays and the mixed yield reports in portions of the Corn Belt. As of Sunday, 14% of U.S. corn is harvested, compared to 11% on average, with 92% dented, 61% mature, and 65% of the crop in good to excellent shape, steady with a week ago. 1% did move from excellent down to good, typical for this time of year. The trade is also keeping an eye on planting weather in Argentina and Brazil. There is rain in the forecast for some dry parts of Brazil. The USDA’s next round of supply, demand, and production numbers is out October 11^th, with CONAB’s updated outlook for Brazil on the 15^th. Corn export inspections were above a week ago and a year ago, primarily to Mexico and Colombia.

The wheat complex was higher on fund and technical buying. Rain has delayed winter wheat planting in some areas, but the soil moisture is welcome. For winter wheat, 25% of the crop is planted, 1% ahead of average, with 4% emerged, 1% behind normal. For spring wheat, 96% of the crop is harvested, compared to the usual rate of 95%. Parts of the Black Sea region remain dry during winter wheat planting and there’s talk of higher abandonment rates in Argentina because of weather and pest issues. U.S. export inspections were larger than the prior week and a year ago, with Ecuador and the Philippines leading the way. Rising tensions between Russia and Ukraine could drive some business to the U.S. The USDA’s Small Grains Summary is out on the 30^th, along with quarterly grain stocks.