Market News

Soybeans lower on harvest pressure

 

Soybeans were lower on commercial and technical selling. Soybeans were watching the harvest, with dry conditions and seasonal temperatures expected over the weekend. Unknown bought 270,000 tons of 2015/16 U.S. beans, while the weekly numbers were neutral. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Weekend weather forecasts for Brazil are generally dry. Informa Economics projects 2016 U.S. soybean acreage at 83.9 million acres, around 300,000 less than the previous estimate.

Corn was higher on short covering and technical buying. Corn was also watching harvest activity, expecting good week to week progress. Weekly export numbers were bearish, with sales and shipments behind last year’s pace. Ethanol futures were steady to firm. Informa Economics has 2016 U.S. corn acreage of 90.8 million acres, slightly larger than the last guess.

The wheat complex was lower on fund and speculative selling, in addition to the firm dollar index. Weekly export sales and shipments were bearish and so are the fundamentals. The trade’s watching U.S. planting and emergence, along with dry conditions in the Black Sea region and Australia. Egypt bought 180,000 tons of milling wheat from Russia and 60,000 tons from Romania. Informa Economics pegs 2015/16 U.S. winter wheat planted area at 39.3 million acres, compared to the prior projection of 39.7 million, with 2016 all wheat acreage at 54.0 million acres.