Market News

Soybeans down on profit taking, despite new China buy

Soybeans were lower on profit taking and technical selling. China bought 264,000 tons of U.S. beans but the weekly export numbers were neutral to a little bearish. Old crop sales were a net reduction, but new crop sales were solid and a lot of beans were rolled over from 2016/17 to 2017/18. Still, new crop is trailing last year’s pace. The trade’s also watching late crop development conditions, which looks mostly non-threatening, maybe a little dry in some areas. Soybean meal and oil were lower, following beans. The European Union says cumulative 2017/18 soybean imports are 2.05 million tons, down 27% on the year.

Corn was modestly higher on commercial and technical buying. Unknown destinations bought 179,324 tons of U.S. corn and weekly export numbers for corn were neutral to slightly bullish. 2016/17 sales were a net negative, but did end the marketing year a little bit better than expected, and new crop sales were good. Forecasts for late corn development generally look good with new USDA supply, demand, and production numbers are out on the 12th. The USDA’s first national corn harvest figure of the season is expected to be out Monday. Ethanol futures were higher. According to Allendale, 2016/17 U.S. ethanol production was up solidly from 2015/16.

The wheat complex was mixed, unable to follow through on the early gains, with pressure from the bearish global supply fundamentals. Weekly export numbers did show at least some disruption in shipping out of the Gulf because of Hurricane Harvey, but that is temporary and 2017/18 sales are ahead of the 2016/17 pace. The spring wheat harvest should be wrapping up soon with dry weather in much of the northwestern Plains. The drought conditions in that region continue to be a long term concern. Aside from scattered dryness in parts of Kansas, conditions for winter wheat planting in the southwestern Plains look good. The USDA’s first U.S. winter wheat planting pace estimate of the season is expected to be out Monday. DTN says Algeria bought 250,000 tons of durum wheat, “likely from Mexico and/or Canada”. Russia’s Ministry of Customs reports wheat exports from January through July of this year were 12.802 million tons, nearly 2 million more than the same period in 2016.