Market News

Soybeans see more gains, with corn, wheat up

Soybeans were higher on short covering and technical buying. Near-term conditions look hot in much of the region, potentially stressing the crop. By this weekend, most of the region should see cooler temperatures and some areas could also get receive rainfall. There’s a chance for scattered storms during the first half of this week, but nothing widespread, as August ends on a mostly dry note. That could trim the USDA’s projected record yield estimate, with the next guess out September 12^th. The Rosario Grain Exchange expects farmers in Argentina to increase soybean acreage for 2024/25, citing weather and the 2023/24 pest damage to corn. It’s now been two days in a row without an announced sale of U.S. soybeans following last week’s spike in demand, mostly from China and unknown destinations. Soybean meal was up and bean oil was down on the adjustment of product spreads. The first notice day for September grain and oilseed contracts is Friday, while markets and most USDA offices will be closed Monday for Labor Day. There’s talk India will raise import tariffs on palm and soybean oils to protect domestic producers.

Corn was higher on short covering and technical buying. Corn bounced off Monday’s contract low in the December, monitoring late development weather and early harvest activity. It’s been a generally dry August for much of the Corn Belt, which could cut into yields slightly. Combines are rolling in parts of the southern Corn Belt with that activity expected to steadily move north over the next couple of weeks. Mexico purchased 127,760 tons of new crop U.S. corn ahead of the open. The 2024/25 marketing year for corn, and soybeans, starts September 1^st. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Wednesday. Corn is also monitoring late second crop harvest and early first crop planting in Brazil.

The wheat complex was higher on short covering and technical buying, along with the dollar falling to near one-year lows during the session. Wheat found some interest after the run to new lows, with the spring wheat harvest behind average and reports of quality issues. Quality concerns and yield questions are also present in France, Germany, Russia, and Ukraine following widespread weather issues during planting, development, and harvest. The trade is also monitoring development weather in Argentina and Australia. Statistics Canada will release updated production numbers Wednesday morning, with the average guess showing all wheat and spring wheat production above a year ago. Export demand for U.S. has improved, even as Russia holds the lowest global price. The trade is waiting to see when Egypt fills more of its recent 3.8-million-ton wheat tender. The first purchase out of the tender was minor with many sellers uncertain about the length of the credit terms.