Market News
Corn, soybeans close higher on China optimism
Soybeans closed higher. July soybeans closed at $8.76 and a half, a new two month high, even without any reported export sales Friday. U.S. soybeans remain cheaper than Brazil’s. Vegetable oil demand is growing with spot sales for both palm oil and soybean oil reaching new three month highs., also helped by Friday’s higher crude oil price. Beans have a neutral price outlook and more bullish potential than corn. The trend is up in cash soybean prices in spite of the ongoing trade dispute with china and feed demand concerns related to coronavirus. There was optimism on word Friday that Chinese officials told Secretary Pompeo they would fulfill phase one U.S. ag purchases. For the week, July soybeans closed up 5 and a quarter cetns and November beans were up one cent.
Corn was higher, also in part from the China optimism. But corn faces a bearish forecast with rain in much of the corn belt. Rain in Kansas and Oklahoma today with forecasts showing ore rain expected for much of the Corn Belt over the next five days. The eastern Corn Belt has been dry but there are some changes for light rain in the region for the next 10 days. July weather is forecast to be favorable for all but the western corn where it’s expected to be warmer than normal and normal to drier. DTN reports USDA’s attache in Beijing said this week that “Fall armyworm’s movement to northern China this year has occurred at least three months earlier than last year, making it highly likely that the pest will establish itself in northeast China, the largest corn producing region in China.” Fall armyworms can cause major crop damage to corn. China’s government says they do not expect widespread damage, about a 2.5% decline in production. For the week, July corn was up two and a half cents and December corn was up two and a quarter cents.
Wheat closed lower Friday. Chicago wheat posted a new nine-month low. Moderate to heavy rains in Kansas and Oklahoma will hold up harvest progress today and maybe in the next 10 days but not by a huge amount. Spring wheat crops may go through stress as the forecast for the northwestern US. Plains is mostly dry over the next 10 days. Central Russia has a dry forecast, a potential problem for spring wheat production. Forecasts in Europe, Ukraine and southern Russia are for scatter showers heading into the weekend. The trends are down for cash winter wheat and sideways for cash spring wheat. For the week, July Chicago wheat was down 20 and ¾ cents, Minneapolis up 11 cents on the week.
