Market News

Soybeans, corn, wheat up, monitoring weather

Soybeans were higher on short covering and technical buying, cementing a higher weekly finish. Beans also followed soybean and crude oils, while waiting for details on U.S./China tariff talks. Officials from Beijing and Washington D.C. are expected to meet early in the coming week. Soybean oil was up on strong April export data, while soybean meal was mixed on bear spreading, pressuring nearby months and supporting deferred contracts. The trade continues to watch U.S. planting and development weather. Parts of the Midwest and Plains are expected to see drier conditions later this month. Trade data shows Brazil exported more than 14 million tons of soybeans during May, down from April, but up on the year. China’s customs agency says it is now allowing soybean meal imports from Uruguay.

Corn was modestly higher on short covering and technical buying, ending the week mixed. Corn was monitoring another round of rainfall in some key growing areas, along with the harvest in South America. Stateside, conditions could turn drier in parts of the region later this month, including portions of the Corn Belt that have missed out on the recent rainfall. There are also some areas that will likely have to replant following flooding and severe storms. The USDA and Brazil’s CONAB will issue updated production guesses on the 12^th. According to trade data, Brazil’s corn exports for May were down sharply on the year.

The wheat complex was higher on fund and technical buying, adding to the weekly gains. Rain has delayed harvest activity and has led to disease concerns for hard and soft red winter wheat, while parts of the spring wheat growing region have turned dry. Dry weather is an ongoing issue in parts of Canada, China, and the Black Sea region, with the trade watching weather in Australia, Argentina, and Europe. Recent escalations in Russia’s war on Ukraine could have an impact on trade. The European Union is reportedly trying to reach a new trade deal with Ukraine, with Brussels pushing for reduced quotas. Ukraine’s Ag Ministry says it expects 2025/26 wheat exports to be 14 million to 15 million tons, but that will depend on the E.U.