More losses in soybeans, even with new export sales
Soybeans were lower on fund and technical selling. Beans continued their correction, watching early U.S. harvest weather and South American planting conditions. China and unknown destinations bought more 2020/21 U.S. beans, 132,000 and 126,000 tons, respectively, the 14th business day in a row with a new sale for a running total of 5,498,500 tons. Sales reported as heading to unknown destinations are frequently, but not always, switched to China for delivery. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Soybean products are also monitoring crush operations in Argentina, the world’s biggest exporter of meal and oil, while getting ready for the new marketing year, which starts October 1st.
Corn was modestly lower on fund and technical selling. Corn is also watching U.S. harvest weather and planting conditions for South America. Stateside, conditions look warm and dry for most areas heading into October, while parts of Argentina are expected to see rain and most of Brazil could stay dry. China’s General Administration of Customs says corn imports since the start of the year are 5.6 million tons, with more presumably to be shipped. Ethanol production was down 20,000 barrels from the week before and 37,000 from last year, hitting a three-month low at an average of 906,000 barrels a day, while stocks were up 199,000 barrels on the week at 19.997 million. That is still 2.503 million barrels below year ago levels. Ethanol futures were lower.
The wheat complex was lower on fund and technical selling, along with the higher trade in the U.S. dollar index. U.S. winter wheat planting is well underway and continuing to expand in the U.S. Plains, even as parts of the region fall further into drought. Dry parts of Europe and Ukraine are expected to get much needed precipitation, but most of Russia is expected to stay dry into early next month. DTN says Egypt bought 405,000 tons of wheat from Russia, Taiwan picked up 91,300 tons of U.S. milling wheat, and South Korea purchased 65,000 tons of feed wheat from a private seller, “likely U.S.” origin. Japan has two open tenders: 86,027 tons of food wheat from the U.S. and Canada and 80,000 tons of optional origin feed wheat. China’s General Administration of Customs says year to date wheat imports are nearly 5 million tons, up sharply on the year.