Market News

Soybeans, corn down after USDA numbers

Soybeans were lower on commercial and technical selling. The USDA increased its already record production and yield estimates, and raised the new crop ending stocks guess. Late development conditions are generally good, but there are concerns about wet weather in some areas. The USDA says 26% of U.S. soybeans are dropping leaves, compared to the five year average of 25%. 73% of soybeans are in good to excellent shape, unchanged on the week. Soybean meal and oil were lower on the fundamental implications of record production.

Corn was lower on commercial and technical selling. The USDA lowered production and yield numbers slightly, but the projections are still at record levels. New crop ending stocks were down slightly on that lower production figure. Ethanol futures were higher. As of Sunday, 87% of U.S. corn has dented, compared to 82% typically this time of year, and 33% has reached maturity, compared to 32% on average. 5% of the crop is harvested, compared to 7%. 74% of corn is rated good to excellent, steady with a week ago.

The wheat complex was higher on short covering and technical buying. U.S. wheat ending stocks were unchanged and while the world number was down a little, there’s plenty of wheat available. Weekly export inspections were bullish. At 94%, the spring wheat harvest is about to wrap up, and at 6%, winter wheat planting is just underway, with several states yet to get an appreciable start. According to Ukraine firm AgroConsult, winter grain planting is being delayed in some areas by warmer and drier than normal conditions. Australia’s ABARE now sees 2016/17 wheat production at 28.08 million tons, up 14.6% from 2015/16.