Market News

Soybeans, corn, wheat lower, digesting USDA numbers

Soybeans were lower on commercial and speculative selling. The trade continued to react to Monday’s USDA bigger production and ending stocks projections. On average, the crop is in great shape, but there are concerns in some areas about wet weather. Strong demand expectations took a back seat Tuesday. The USDA’s weekly export sales report is out Thursday. Soybean meal and oil were lower on the fundamental implications of record soybean production. New data from the FSA implies modest changes to acreage numbers in October.

Corn was lower on commercial and speculative selling. The USDA did lower the 2016 corn production guess, but at this point, it is still expected to be a record crop. Corn demand is good, however, the ending stocks projection continues to hang over the market. Harvest is just getting underway nationally with early rain delays in some key growing areas. Ethanol futures were lower with weekly EIA production and stocks data out Wednesday. New U.S. allegations about China over subsidizing farmers for corn, wheat, and rice could have an impact on global prices trade. According to the USDA, Brazil is expected to import 1.7 million tons of corn during the 2015/16 marketing year, the most in 16 years. Brazil recently approved one GMO type of corn for import, limiting the amount that can be supplied by the U.S. U.S. prices remain at a discount to key competitors. Argentina and Brazil are both expected to see year to year improvements in production following widespread weather issues.

The wheat complex was lower on commercial and speculative selling. The spring wheat harvest is about to wrap up and winter planting is getting started in many areas. Export demand has been good during the first quarter of the marketing year, but there’s a lot of wheat available. The USDA did lower world ending stocks Monday and while U.S. stocks were unchanged on the month, they’re still expected to be over 1 billion bushels.