Market News

Soybeans down, corn up after USDA numbers

Soybeans were lower on commercial and technical selling, hitting new multi-month lows. The USDA is projecting record U.S. acreage this year and quarterly stocks were larger than expected. Quarterly demand was close to expectations, but the actual supplies may have been larger than realized. The USDA’s next set of supply and demand estimates is out April 11^th. The trade’s watching South America, expecting record production and more export competition. Soybean meal and oil followed beans lower.

Corn was higher on commercial and technical buying, posting a slight gain for the week. U.S. corn acreage is expected to be down 4% on the year and the quarterly stocks number did reflect strong demand. Corn may be trying to buy back some acreage from beans ahead of widespread U.S. planting. National weekly crop progress reports resume Monday at 4 PM Eastern/3 PM Central. Ethanol futures were higher. The USDA’s attaché in Malaysia says 2016/17 corn imports are expected to be down on the year at 3.8 million tons, but purchases from the U.S. should increase because of strong demand from Malaysian feed mills.

The wheat complex was mixed with Chicago and Kansas City up on short covering and Minneapolis down on profit taking. U.S. wheat acreage should be the lowest since 1919 and stocks were up 21% from last year. The supply side of the market continues to be the big bearish factor and should limit any real upside. Tunisia bought 100,000 tons of optional origin soft milling wheat. The USDA’s attaché in Malaysia estimates 2016/17 wheat imports at 1.7 million tons, with increased demand for U.S. wheat because of high quality.