Wheat down on precipitation in the Plains

Market News

Wheat down on precipitation in the Plains

Soybeans were mostly modestly higher. Beans are consolidating, watching the accelerated planting pace in South America and harvest delays in the U.S. The USDA says 83% of U.S. soybeans are harvested, compared to the five-year average of 73%. According to AgRural, 23% of Brazil’s soybean crop is planted, compared to 8% the previous week. Near-term rainfall is expected to generally favor Brazil over Argentina. The Philippines bought 135,000 tons of bean meal and unknown destinations picked up 120,700 tons of beans, all for delivery during the current marketing year. Weekly export inspections were bullish at nearly 2.7 million tons, the bulk of that to China. China’s General Administration of Customs says soybean imports from Brazil during September were 7.25 million tons, compared to 4.79 million in September 2019. Soybean meal was mixed, nearby contracts up, deferred months down, on bull spreading, and bean oil was supported by a higher move in palm oil.

Corn was modestly lower on profit taking and technical selling, along with spillover from wheat. Corn is also watching planting activity in Argentina and Brazil and harvest activity stateside. According to the USDA, 72% of U.S. corn is harvested, compared to 56% on average. Demand continues to be solid, limiting losses, and APK-Inform has slashed their production outlook for Ukraine from 35.9 million tons in 2019 to 30 million tons in 2020. Weekly export inspections were down on the week, up on the year, and remain ahead of the 2019/20 pace. China’s General Administration of Customs says September corn imports were 1.08 million tons, bringing the total for the calendar year to 6.667 million tons. Ethanol futures were higher.

The wheat complex was lower on profit taking and technical selling. Kansas City led the way down as much needed rain and snow should benefit hard red winter wheat in the Southern U.S. Plains and also help out dry parts of the soft red winter region. Still, colder temperatures could damage some of the emerged crop. The USDA reports 85% of winter wheat is planted, compared to 80% on average, and 62% has emerged, compared to the normal rate of 60%, and 41% of the crop is rated good to excellent, compared to 56% a year ago. Russia is expected to remain mostly dry, furthering drought conditions, and rain in Australia ahead of widespread harvest activity could harm crop quality. Weekly wheat inspections above the prior week, below year ago levels, and are ahead of last marketing year. DTN says Egypt bought 165,000 tons of wheat from Russia and South Korea purchased 50,000 tons of feed wheat from an unknown origin, while Pakistan is tendering for 320,000 tons of wheat and Syria is in the market for 200,000 tons of wheat from the Black Sea region. France’s AgriMer says 45% soft wheat is planted, compared to 12% the week before.