Market News

USDA numbers pressure grains, oilseeds

Soybeans were lower on commercial and technical selling. The USDA raised the production and yield estimates, but also increased the export guess for this marketing year. The USDA also increased Brazil’s 2016/17 production estimate, while leaving Argentina unchanged. Argentina’s new crop export estimate was lowered slightly and Brazil was steady. Chinese soybean imports were held at 86 million tons. China bought 115,000 tons of 2016/17 soybeans Wednesday morning, 60,000 tons U.S. and 55,000 tons optional origin. Soybean meal was lower and bean oil was steady to weak.

Corn was lower on commercial and technical selling. USDA lowered the production and yield numbers, but still expects both to be new all-time highs. The corn for ethanol use estimate was unchanged. For Argentina, the 2016/17 production estimate was steady and exports were lowered slightly. For Brazil, the production estimate was up slightly and exports were unchanged. Production and export estimates for South Africa were not adjusted. Near term forecasts have harvest delays in parts of the Midwest. Ethanol futures were lower.

The wheat complex was lower on commercial and technical selling. U.S. ending stocks were up on the month and world ending stocks were only down slightly. The world production estimate was also a little bit lower, while exports were higher on increased expectations for Australia and Canada. Export estimates for the former Soviet Union were unchanged and Russia’s wheat production guess was steady at 72 million tons. According to Allendale, Ukraine’s wheat acreage could be lowered significantly by rain delaying planting activity. U.S. winter wheat planting and emergence are both close to average. Japan bought 16,000 tons of U.S. feed wheat in a sell-buy-sell purchase. Tokyo also has an open tender for 100,000 tons of food wheat from the U.S. and Canada, along with another sell-buy-sell tender for 120,000 tons of feed wheat. Jordan bought 100,000 tons of optional origin milling wheat.