More new lows for corn
Soybeans were mostly lower on spread adjustments, May and July firm and the other months weak to modestly lower. Brazil’s harvest is more than 60% complete and their prices remain at a significant discount to U.S. supplies. Dry parts of Argentina are expected to get some rain this week ahead of harvest activity getting underway. Shipping delays are being reported out of Argentina’s main port in Rosario as the government closes its borders to fight the spread of coronavirus. The trade continues to wait for signs of improved demand from China under the phase one trade agreement. Soybean meal was mostly lower, following beans, and bean oil was up, rebounding from more than ten-year lows. Egypt is reportedly tendering for soybean oil.
Corn was lower on fund and technical selling. The trade expects an increase in U.S. acreage, with the USDA’s prospective planting numbers out on the 31st, but that depends on weather. Quarterly stocks numbers are also out at the end of the month. Export sales remain slow and there are concerns about ethanol demand after the recent drop in crude oil. Ethanol futures were lower on those concerns about demand. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Wednesday. The Dow Jones Industrial Average closed more than 1,000 points higher, about a third of Monday’s drop, following more moves by the federal government to stabilize the economy amid the COVID-19 outbreak.
The wheat complex was mixed, mostly lower. Chicago was mixed on spread trade and Minneapolis was down on a lack of follow through buying, but Kansas City was up on comparatively better demand for U.S. hard red winter wheat. Kansas City was also oversold after four consecutive lower finishes. The trade is watching winter wheat come out of dormancy and conditions in the northern Plains ahead of spring wheat planting. The USDA says winter wheat condition ratings improved over the past week for Oklahoma and Texas, while Kansas declined slightly and Arkansas’ rating continues to reflect the very wet conditions in that part of the soft red winter region. DTN says Japan is tendering for 90,311 tons of food wheat from the U.S. and Canada, while Tunisia purchased 67,000 tons of durum and 25,000 tons of soft wheat from unnamed origins.