Market News
Soybeans, corn up, wheat down ahead of USDA reports
Soybeans were higher on speculative and technical buying. Most forecasts have light near-term rain in South America, but some areas will remain mostly dry, while U.S. harvest activity could wrap up soon. The USDA says 92% of U.S. soybeans are harvested, compared to the five-year average of 90%. Unknown destinations bought 123,000 tons of 2020/21 U.S. beans. Weekly export inspections were bullish, with China and Mexico the top destinations. China’s General Administration of Customs says soybean imports for October were 8.69 million tons, up 41% on the year. AgRural says 56% of Brazil’s soybean crop is planted, but activity did get off to a slow start. Those planting delays in South America should lead to continued solid demand for U.S. beans into 2021. The USDA is expected to issue a bullish set of supply and demand estimates Tuesday at Noon Eastern/11 Central. The USDA’s attaché in Argentina says Buenos Aires will be reimbursing small and midsize farmers for part of their soybean export taxes recorded between February 1st and December 31st of this year. Soybean meal and oil were higher on the higher move in beans and demand expectations.
Corn was higher on speculative and technical buying. Corn was also watching weather in Argentina, Brazil, and the U.S., while getting ready for the upcoming supply, demand, and production report. As of Sunday, 92% of U.S. corn is harvested, compared to 90% on average. As with beans, U.S. corn ending stocks are expected to tighten on good demand and a smaller crop. Weekly export inspections were down on the week, but up on the year, with China and Mexico leading the way. Corn exports are also expected to benefit from the planting delays in South America, especially since Brazil’s second crop isn’t planted until after soybeans are harvested. Ethanol futures were higher. The broader market was also generally supportive for corn and soybeans.
The wheat complex was lower on fund and technical selling. Most forecasts have precipitation in U.S. soft red winter growing areas, while the hard red winter region could remain drier than normal ahead of widespread dormancy. The USDA reports 93% of U.S. winter wheat is planted, compared to the usual rate of 91%, and 79% has emerged, compared to 78% on average, while 45% of the crop is rated good to excellent, 2% more than last week, but 9% less than this time last year. The Black Sea region has seen rain, but not enough to break the drought in parts of Russia and Ukraine, both key exporters. The trade is also monitoring early harvest conditions in Australia. 42% of Argentina’s winter wheat crop is in poor to very poor condition. The USDA’s supply and demand update is expected to show near steady U.S. ending stocks, so a lot of the market’s focus will end up on the global tables. France’s AgriMer says 76% of the soft wheat crop is planted, compared to 66% the previous week and 63% a year ago. Weekly export inspections were down on the week and the year.