Soybeans, corn down, but still up on week
Soybeans were modestly lower on fund and technical selling, still posting week to week gains. China was the big buyer of U.S. beans last week and bought another 132,000 tons Friday morning, half old crop and half new crop, but political tensions are a big concern. After Friday’s close, President Trump announced new sanctions on Beijing because of coronavirus, Hong Kong, and issues regarding technology. It remains to be seen what effects this will have on trade. China has also reportedly continued to buy beans from Brazil, despite the U.S. advantage in price. Soybean meal and oil were modestly lower, following beans. The USDA’s soybean crush numbers for April are out Monday, with the average guess at 182.5 million bushels.
Corn was modestly lower on profit taking and technical selling, while still managing a higher weekly finish. Weekly export numbers were bearish with plenty of competition for market share. Nearly 50% of Argentina’s crop is harvested and Ukraine’s Grain Union projects a bigger crop this year than last year. Dry weather could limit production of Brazil’s second crop and the spread of COVID-19 is expected to have some impact on shipping. Some areas will likely wrap up planting within the next few days with the USDA’s weekly numbers out Monday, June 1st and the 2020 planted area totals set for June 30th. Quarterly stocks numbers are also out at the end of June. Friday morning, unknown destinations bought 101,600 tons of 2019/20 U.S. corn. Ethanol futures were higher. The USDA’s April corn for ethanol use numbers are out on Monday.
Wheat was higher on short covering and technical buying, building on what was already going to be a higher week for the complex. The trade is watching the weather, with warmer, drier weather in the Plains possibly stressing hard red winter. Warmer, drier weather would largely benefit much of the soft red winter crop and most of the spring wheat growing region is expected to see better planting weather. Weekly export numbers were good with just a few reporting days left in the marketing year. The 2020/21 marketing year for wheat officially starts June 1st. The European Commission reduced its’ 2020/21 soft wheat production guess for the European Union by 4.3 million tons to 121.5 million, citing weather. SovEcon sees Russia’s 2020/21 wheat exports at 36.8 million tons, up on the year and above the USDA’s current guess. The USDA’s next set of supply and demand estimates is out June 12th. DTN says no purchases were made in wheat tenders from Jordan and Thailand.