Market News

Soybeans, products see profit taking, corn and wheat finish mixed

Soybeans were lower on profit taking and technical selling. The trade is waiting for any clarity on a major trade meeting with China, expected to happen next month. The ongoing volatility around the military actions in Iran and the Middle East is clouding those negotiations, partially because China is a major trading partner of not only the U.S., but also Iran. The USDA’s weekly export sales numbers are out Thursday. Soybeans are also monitoring Argentina’s harvest, with a drier pattern on tap for some areas, while activity in Brazil is nearly wrapped up for the season. Beans were up early but softened as products drifted. Soybean meal saw a lack of follow-through buying, soybean oil gave back a small part of the recent gains on profit taking and overbought signals.

Corn was mixed, consolidating late. Parts of the Midwest have more rain in the forecast, delaying planting, but boosting soil moisture. Globally, corn is watching harvest activity in Argentina and second crop development weather in Brazil. Colder temperatures could have some impact on planted area in Ukraine, while there’s talk France could cut back on planted area due to rising input costs. The USDA’s next round of supply and demand estimates is out May 10^th, with CONAB’s updated outlook for Brazil set for May 14^th. Unknown destinations bought 130,000 tons of old crop U.S. corn ahead of the open. That was the second day in a row with an announced sale of 2025/26 corn for a running total of 425,000 tons. Also on the demand side of the ledger, the U.S. Energy Information Administration says ethanol production averaged 1.04 million barrels per day, down 80,000 on the week, but up 7,000 on the year, with stocks of 26.948 million barrels, an increase of 249,000 from the previous week and 1.467 million from a year ago, and exports averaging 91,000 barrels per day, 10,000 higher than the week before and 16,000 more than last year.

The wheat complex was mixed. Parts of the Plains could see rain soon, but it might be too late and too scattered for some of the hard red winter crop. Even before harvest gets underway on a widespread basis, there’s been talk about a higher rate of abandonment this year due to widespread drought in the HRW region. Soft red winter conditions continue to look much better than hard red winter, but some SRW could see excessive moisture issues. The trade’s also monitoring conditions in Europe, Russia, and Ukraine, and weather ahead of widespread planting in Argentina, Australia, and Canada. A major railway operator in Russia says April wheat exports could be 3.8 million tons, up 100,000 from the last guess.