Market News

Soybeans see more gains with corn mixed, wheat down

Soybeans were higher on commercial and technical buying. Planting is ahead of average, but parts of the Midwest and Plains continue to see near-term delays from heavy rainfall. The corn planting delays have led to some talk of acreage adjustments, but nothing firm, yet. Parts of southern Brazil continue to grapple with the impact of flooding, with more rain this week, which has caused crop damage and loss, along with the loss of human life. For Argentina, cooler, drier conditions are expected to help harvest activity pick up steam. The USDA’s updated supply, demand, and production numbers are out June 12th, with CONAB’s next round of projections for Brazil on June 13th. There was more talk Wednesday, but no confirmation, of China buying U.S. soybeans. ANEC estimates Brazil’s April soybean exports to 13.83 million tons, compared to 14.4 million a year ago. Soybean meal closed higher, following beans, while bean oil ended the session mixed on bull spreading.

Corn was mixed, mostly modestly higher. More planting delays are probable in parts of the Corn Belt this week, but some areas could see a drier pattern next week. Still, parts of the region will remain wet and there has been severe weather damage, so replanting or switching to soybeans could impact U.S. planted area totals. There is rain in the forecast for dry second crop areas of central and northern Brazil. Corn is also monitoring harvest activity in Argentina. The U.S. Energy Information Administration says ethanol production last week averaged 1.019 million barrels a day, up 19,000 on the week and 36,000 on the year, with stocks of 24.212 million barrels, a decrease of 277,000 from the previous week, but an increase of 2.171 million from a year ago.

The wheat complex was lower on profit taking and technical selling, along with the higher move in the dollar during the session. The trade continues to assess freeze and dry weather damage in the Black Sea region, which has pushed Russian prices higher. It remains to be seen if that will help U.S. wheat exports. The USDA’s weekly sales numbers are out Thursday morning. Strong storms in parts of the central and southern U.S. Plains might have damaged some hard red winter wheat, part of which might have already had its production potential limited by ongoing dry weather in the region. Conversely, some of the U.S. soft red winter crop is seeing an impact from excessively wet conditions, which is also an issue in parts of western Europe. A crop tour in Illinois this week did project a yield well above the USDA’s most recent guess, but also noted the potential for disease issues because of the excessively wet conditions in parts of the state. Spring wheat planting in portions the northern U.S. Plains and Canada could see more wet weather delays, with cooler temperatures also a concern.

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