Market News

Soybeans finish firm on demand

Soybeans were modestly higher on commercial and technical buying. Demand continues to be strong and U.S. prices at the Gulf are currently below Brazil’s major ports. Rainfall in parts of the Midwest this week will help with development. Soybean meal was weak and bean oil was higher on the adjustment of product spreads. Bean oil found more additional support from palm oil as well. Celeres sees Brazil’s 2017/18 soybean crop at 109.1 million tons and Safras e Mercado projects exports at 64.5 million tons, up 24% on the year. Brazil’s marketing year runs from February through January.

Corn was modestly lower, hitting another round of new lows, on commercial and technical selling. That rainfall has caused flooding in some areas, but is expected to be beneficial overall. A notable crop tour is showing widely varied yields, with results scheduled to be out later this week. The state-by-state averages have generally hewed pretty close to expectations, but crop tour estimates and final USDA totals rarely, if ever, match up. Ethanol futures were mostly weak ahead of the weekly EIA production and stocks numbers.

The wheat complex hit new lows on commercial and technical selling. Rain will help recharge soil ahead of winter wheat planting, but is expected to miss the drought stricken northwestern Plains. Harvest results for the spring wheat have been varied, as expected, largely dependent on rainfall during the growing season. The global fundamentals remain bearish. Russian firm IKAR raised its outlook for Russian wheat production to 79 million to 82 million tons, also raising its export projection. New production numbers from Statistics Canada are out August 31st.