Mixed finish for soybeans, corn

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Mixed finish for soybeans, corn

Soybeans were mixed, mostly lower, with commercials consolidating positions. Weekly export numbers were neutral, with China the second biggest weekly buyer, but with a slow week for shipments, with about five months left in the current marketing year. The broader market had a solid session, even after record jobless claims last week. For South America, rainfall is expected to be largely beneficial for Argentina, while only scattered precipitation is in the forecast for most of Brazil. Brazil’s Ministry of Agriculture says March soybean exports were 11.644 million tons, less than the 13.1 million expected, but more than the 9.087 million in March 2019. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Soybean meal exports were bearish, but bean oil hit a new marketing year high.

Corn was mixed, mostly higher, on commercial spread adjustments. Weekly export numbers were solid, but the overall supply outlook is neutral to bearish. Sorghum exports also had a good week while looking at neutral to bearish supply fundamentals. The trade is waiting to see what kind of adjustment there will be to planting intentions. The USDA is projecting acreage at 97 million, but that’s expected to change because of the drop in crude oil on slower demand, which lowers blending demand for ethanol. Crude oil was higher Thursday with Russia and Saudi Arabia expected to agree to production cuts. Ethanol futures were higher on the rebound in crude oil. The Renewable Fuels Association says ethanol exports during February were 194.2 million gallons, up 71% on the year and the highest monthly volume in two years. DDGS sales of 852,904 tons were up 24% on the year. Corn is also watching weather in South America.

The wheat complex was lower on fund and technical selling. With just about two months left in 2019/20, weekly U.S. wheat sales were a marketing year low and Russia is still considering limiting exports, but no decision has been announced. Moscow is set to sell 1 million tons of grain from state reserves to the domestic market to limit price inflation and increase availability. Additionally, it looks like recent U.S. domestic needs may have been filled. New supply and demand estimates are out on the 9th. The complex continues to monitor the condition of winter wheat emerging from dormancy and weather in the northern U.S. Plains ahead of widespread spring wheat planting. The USDA’s weekly crop progress and condition numbers resume on the 6th. India is expected to have issues harvesting wheat because of the nation’s coronavirus lockdown. Egypt issued a tender for wheat, but then canceled it and while Cairo didn’t offer a reason, it had recently stated supplies were sufficient. DTN says Jordan is tendering for 120,000 tons of milling wheat.

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