Market News

Soybeans, corn higher ahead of Monday’s USDA numbers

Soybeans were higher on commercial and technical buying. Weekly new crop exports were strong and old crop ended the marketing year just short of the USDA’s estimate. There have been no deliveries reported for September soybeans or meal, which expire Monday. The USDA’s new supply, demand, and production estimates are out Monday as well. Crop forecaster Descartes Labs estimates U.S. soybean production at 3.98 billion bushels with an average yield of 47.9 bushels per acre. Ahead of Monday’s report, according to DTN, the average of analysts’ estimates is for a crop of 4.1 million bushels with an average of 49.4 bushels per acre. Soybean meal was down and bean oil was up on the adjustment of product spreads. China’s Customs Ministry says August soybean imports were 7.67 million tons, down 1.5% on the year.

Corn was higher on commercial and technical buying. Near term forecasts for some key growing areas have more rain, with flooding concerns in parts of the region. New crop sales were good, but old crop sales were 5% short of USDA’s projection. Ahead of Monday’s USDA numbers, the average estimate for corn production is 14.974 billion bushels with an average yield of 172.9 bushels per acre. Ethanol futures were higher following Thursday’s bullish EIA stocks and production data.

The wheat complex was mixed with Chicago weak and Kansas City and Minneapolis up modestly. Weekly export numbers were bullish, but, globally, there’s a lot of wheat and Russia is expected to produce a record post-Soviet crop. Monday, U.S. wheat ending stocks are expected to be up on the month. Forecasts have more winter wheat planting delaying rain in parts of the Plains and Midwest. Taiwan bought 87,000 tons of U.S. milling wheat and South Korea purchased 60,000 tons of optional origin feed wheat.