Market News

Soybeans, corn see profit taking, planting pressure

Soybeans were lower on profit taking and technical selling, while ending the week higher. Near-term weather forecasts for planting and emergence generally look favorable. Some rain is probable this weekend, but at least as of Friday afternoon, severe potential seemed to be limited in most areas. The USDA’s weekly crop progress and condition report will be out Tuesday, delayed by Memorial Day. The trade’s also watching Argentina’s harvest resume in some areas after the recent heavy rainfall. The Buenos Aires Gran Exchange says 74.3% of the crop is harvested. Soybean meal was lower and soybean oil was higher on the adjustment of product spreads. Bean meal had additional pressure from profit taking, while bean oil picked up extra support from the firm trade in crude oil.

Corn was lower on profit taking and technical selling but still saw solid week-to-week gains. Corn is watching planting and development weather, expecting planting to wrap up in parts of the Corn Belt soon. Most of the weekend rainfall is expected to be concentrated in southern U.S. growing areas, pushing back planting further in some areas. The Buenos Aires Grain Exchange says 38.8% of Argentina’s corn crop has been planted. The trade is also watching second crop development conditions in Brazil. The USDA’s updated supply, demand, and production numbers are out June 12^th. Commodities in general continue to wait for public progress in trade talks. There’s been a lot of talk about deals in the works, but for now, tariffs remain in place with most key U.S. trading partners and President Trump has proposed raising tariffs against the European Union to 50% on June 1^st. That could potentially have a significant impact on export business for several commodities.

The wheat complex was mixed. Chicago and Kansas City were down on profit taking, while Minneapolis was up on the lower move in the dollar and the most active months at all three pits did see good weekly gains. Dry weather is a concern in parts of the Black Sea region, China and Europe. That stands in contrast to the mostly favorable development weather for winter wheat and generally good spring wheat planting conditions. The trade’s also monitoring planting and development weather in Argentina, Australia, and Canada. Recent heavy rainfall delaying the corn and soybean harvests in Argentina has also impacted wheat planting. The Buenos Aires Grain Exchange says 3.4% of the crop has been planted. Commodity markets are closed Monday for Memorial Day.