Market News

Soybeans, corn, wheat down ahead of USDA numbers

Soybeans were lower on profit taking and commercial selling. The trade was waiting for Tuesday’s new USDA supply, demand, and production estimates. That’ll include the first U.S. production guesses of the season and new South American numbers. The numbers are out at Noon Eastern/11 AM Central. As of Sunday, 23% of U.S. beans are planted, compared to the five year average of 16%. Soybean meal and oil followed beans lower. According to Stats Canada, canola stocks as of March 31st were 7.5 million tonnes, down 10% on the year, and soybean stocks were 1.8 million tonnes, 15% less than a year ago, despite a 3% increase in production.

Corn was lower on profit taking and commercial selling. Corn was also getting ready for the USDA numbers and watching U.S. planting weather. Producers made solid progress over the past week with 64% of the crop now planted, compared to 50% on average, and 27% has emerged, compared to 17%. Ethanol futures were lower. Japan bought 170,000 tons of U.S. and unknown destinations purchased 120,000 tons, both for delivery during the current marketing year. At the end of March, Stats Canada says corn stocks were 7.8 million tonnes, up more than 23%.

The wheat complex was lower on profit taking and commercial selling. Wheat was also waiting for the USDA numbers, which should reflect the bearish fundamentals. For U.S. winter wheat, 62% of the crop is rated good to excellent, up 1% and quite a bit above a year ago, and 57% has emerged, compared to 44% normally this time of year. For spring wheat, 77% is planted, compared to 51% on average, and 39% has emerged, compared to 25%. Statistics Canada reports wheat stocks as of March 31st were 13.8 million tonnes, down almost 24% on the year.