Market News

Strong end to the week for soybeans, soybean meal

Soybeans were higher on fund and technical buying, cementing a solidly higher weekly finish. The trade was monitoring harvest delays in the southeast against faster activity in other parts of the region. That disparity should be reflected in Monday’s weekly crop progress and condition numbers. There was more talk of new U.S. soybean purchases by China ahead of the Golden Week holiday, but no confirmation. Portions of Argentina and Brazil need rain as planting starts to get underway. Soybean meal was up sharply on fund buying, while soybean oil was down on profit taking, along with lower moves in palm and canola oils ahead of the U.S. session. Those losses in bean oil were despite the sale of 20,000 tons of U.S. soybean oil to South Korea. The new marketing year for soybean products starts October 1^st.

Corn was higher on fund and technical buying, adding to the week-to-week gains. Corn was watching harvest activity, including the delays in the southeastern Corn Belt and drier weather in western growing areas. The recent rainfall appears to have boosted Mississippi River movement while lowering barge rates. There’s some talk that corn and soybeans have put in their harvest lows early. The USDA’s next round of supply and demand estimates is out October 11^th. Just 11% of Argentina’s crop has been planted due to generally dry weather. Extended soybean planting delays in Brazil would have an impact on second crop corn, but that won’t be an issue for several months. CONAB’s updated outlook for Brazil is set for October 15^th.

The wheat complex was lower on fund and technical selling, while still closing firm to higher for the week. While U.S. export sales have improved when compared to last marketing year, Russia still has the lowest global price, so the trade is wary about pricing U.S. wheat above demand. That concern is despite production in Russia and Ukraine falling below initial expectations due to weather issues in some key growing areas. Soft red winter planting delays are likely, but hard red winter planting weather looks clear. The spring wheat harvest should be essentially wrapped up. The USDA’s Small Grains Summary is out Monday, along with the Quarterly Grain Stocks report. France’s AgriMer says 1% of the soft winter wheat crop has been planted, matching the normal pace. The trade is also monitoring crop quality and the potential for increased abandonment in Argentina and development weather in Australia.