Market News

Soybeans fail to follow through on early gains

Soybeans were fractionally to modestly lower on commercial and technical selling, unable to follow through on early gains. South American production should be a new record and U.S. planting is also expected to be an all-time high. Last week’s quarterly stocks figure implies higher U.S. ending stocks in next week’s USDA supply and demand report. Soybean meal and oil were mostly firm in consolidation trade. Brazil’s Ag Ministry says March soybean exports were a new monthly record at 9.7 million tons. According to Allendale, Malaysian palm oil exports during March were up nearly 7% from February.

Corn was modestly lower on profit taking and technical selling. Conditions look good in much of the Midwest ahead of widespread planting, with the USDA’s first planting estimate of the season expected next week. Some corn has been planted in portions of the southeastern Cornbelt. Last week’s acreage number was nominally bullish, but assuming ideal or near ideal conditions, this year’s crop should still be pretty large. Corn’s also watching South America and expecting record production. Ethanol futures were mixed.

The wheat complex was mixed with Chicago uneven on spread trade, Kansas City up on commercial buying, and Minneapolis down on technical selling. As of Sunday, the USDA says 51% of U.S. winter wheat is in good to excellent shape, compared to 59% a year ago, and 14% is rated poor to very poor. Conditions vary widely depending on which state you’re looking at. There is more rain in the forecast for parts of the Plains and global conditions, at this point, are generally good. Japan is tendering for 120,507 tons of food wheat from the U.S., Australia, and Canada, and Algeria is in the market for 50,000 tons of optional origin milling wheat.