Market News
Soybeans mostly up ahead of shift in weather
Soybeans were mostly higher on spread trade and commercial buying. Beans are watching the weather, expecting a shift to a cooler pattern in many key growing areas next week. That’s going to ease stress, but some yield loss is likely after warmer and drier than normal conditions experienced by many areas in August. The trade is also monitoring the potential for a frost or freeze event next week in northern parts of the growing region. The USDA says China and unknown destinations both bought U.S. soybeans Thursday morning, 132,000 and 318,000 tons, respectively. China and unknown destinations were also the biggest buyers of 2020/21 U.S. soybeans last week. The 2020/21 marketing year started September 1st. Soybean meal was higher and bean oil was lower, unwinding product spreads.
Corn was lower on profit taking and technical selling. Most private firms have lowered yield estimates ahead of next week’s supply, demand, and production report, out on the 11th. Parts of the region will see bumper crops, but other areas have suffered from dry conditions, including almost all of Iowa. Several states, especially Iowa, also saw damage from last month’s derecho storm, and there’s a possibility of a frost next week in parts of the northern Corn Belt. Weekly new crop corn export sales were 94.1 million bushels, mainly to China, unknown destinations, and Japan. Ethanol futures were unchanged. The Renewable Fuels Association says July ethanol exports were 74 million gallons, down 6% from June and the lowest monthly total since September 2019. DDGS exports were 1.08 million tons, up 23% on the month.
The wheat complex was mixed with Chicago and Kansas City down and Minneapolis mostly fractionally higher. China was the biggest buyer of U.S. wheat last week, confirming some of the recent rumors, even with no announced daily sales. There’s been talk this week of even more interest from China. Some spring wheat growing areas could see a frost or freeze next week, potentially harming the quality of the crop, but speeding up harvest activity in some areas. The trade is also monitoring weather in the central and southern Plains and eastern Midwest ahead of new crop winter wheat planting. DTN says Japan bought 106,937 tons of food wheat from the U.S., Australia, and Canada and Egypt is tendering for an unspecified amount of wheat. Ukraine’s government says it will cap 2020/21 wheat exports at 17.5 million tons.
