Soybeans see more export support

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Soybeans see more export support

Soybeans were higher on fund and technical buying. Unknown destinations bought 120,000 tons of U.S. beans Thursday, half old crop and half new crop, the third day in a row with a reported sale. The running total for this week is 438,000 tons, mostly new crop. General trade sentiment has been that China has been doing most of this week’s buying, but Beijing is also purchasing beans from Brazil as a hedge against tensions with the U.S., even with the U.S. advantage in price. Weekly export sales were below average and shipments fell short of what’s needed to meet projections for the 2019/20 marketing year. The USDA’s next set of supply and demand estimates is out June 11th. Crop weather generally looks good for planting and development. Soybean meal was higher on commercial buying and strong export sales, while bean oil was mixed on spread adjustments. Nearby bean oil had additional pressure from a lower overnight move in palm oil. The U.S. Census Bureau says soybean oil exports for April were 74,202 tons, up sharply, mainly to Canada.

Corn was higher on fund and technical buying. Corn was also watching the weather, expecting some areas to wrap up planting by the end of the week. The USDA’s weekly crop numbers are out Monday the 8th and planted acreage totals are out on the 30th, along with quarterly stocks. In March, the USDA projected planted area at 97 million acres, but the actual total will likely be below that mark. Old crop export sales were mixed and new crop sales were below expectations, but it was a good week for physical shipments. Ethanol futures were higher. The Renewable Fuels Association says ethanol exports for April were 99.4 million gallons, a drop of 29% from March, with sales to most major markets declining.

The wheat complex was higher on fund and technical buying. Hot, dry weather in the Plains should help the winter wheat harvest, but could also trim yields, and some soft red areas are seeing harvest delays because of weather. Conditions look good for spring wheat planting in the northern U.S. Plains and Canada. The trade is also watching expected rainfall in parts of the European Union, Russia, and Ukraine. If the crop losses materialize as expected, it could drive some export business to the U.S. With just a handful of reporting days left in the 2019/20 marketing year, old crop shipments have passed the mark needed to meet USDA projections and new crop sales were good. The 2020/21 marketing year for wheat got underway June 1st.

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