Soybeans, corn weak on profit taking

Market News

Soybeans, corn weak on profit taking

Soybeans were modestly lower on profit taking and technical selling. Nothing has really changed fundamentally, but contracts were due for a correction after the recent strength. The lone bits of bearish news this week have been U.S. prices rising above Brazil, a marketing year low for export sales because of possible demand rationing, and expectations for increased global oilseed acreage in 2020/21. The trade continues to monitor crop conditions in South America, with the USDA expected to lower production estimates next week. Ahead of the open Thursday, unknown destinations bought 213,350 tons of 2020/21 U.S. beans and 130,000 tons for 2021/22. Those could turn out to be China when it’s time for delivery. Soybean meal was down, following beans, and oil was mostly firm on spread adjustments.

Corn was modestly lower on profit taking and technical selling. Corn also saw a slight correction while watching weather in Argentina and Brazil. The Buenos Aires Grain Exchange says 15% of Argentina’s corn crop is in poor to very poor shape. The grain inspectors strike in Argentina has reportedly ended. Weekly export numbers were bearish on corn and while 2020/21 sorghum sales were a net reduction, 2021/22 sales were good. U.S. corn continues to have a significant price advantage over competing origins. New USDA supply and demand estimates are out on the 12th, along with quarterly grain stocks and the final 2020 corn and soybean production totals. Ethanol futures were unchanged. The Renewable Fuels Association says November 2020 ethanol exports were 113.6 million gallons, down 10% from October, but up 6% from November 2019. DDGS exports were down 3% on the month but up 2% on the year at 927,604 tons.

The wheat complex was lower on fund and technical selling. There’s talk some producers in Argentina are accelerating sales, expecting the government to suspend exports, similar to the recent move by Buenos Aires with corn exports. Weather-wise, the complex is monitoring conditions for winter wheat in the U.S. and Black Sea region, while also keeping an eye on harvest activity in Australia. World wheat prices were mostly lower heading into the U.S. session and the dollar was up during the session, making U.S. goods more expensive on the export market. Weekly wheat export sales were bearish and shipments were less than what’s needed to meet USDA projections for the current marketing year. The USDA’s winter wheat planted area totals are also out next week. DTN says Japan bought 120,228 tons of food wheat from the U.S., Australia, and Canada, while Jordan is tendering for 120,000 tons of food wheat.