Soybeans, corn start week mostly lower
Soybeans were mixed, mostly lower, adjusting spreads. The old crop supply remains tight and the new crop supply isn’t expected to be much larger. The USDA says 61% of U.S. soybeans are planted, compared to 42% a week ago and the five-year average of 37%, with 20% of the crop emerged, compared to 12% on average. Overall demand remains strong, even as exports have slowed down, with Brazil taking most of the market share. U.S. sales and inspections remain ahead of what’s needed to meet USDA projections for the current marketing year, which runs through the end of August. The top destinations were Japan and Mexico. The NOPA member crush for April was 160.310 million bushels, below all estimates, likely because of tight supplies and maintenance. The trade is monitoring reports of U.S. soybean imports from Brazil because of supply tightness. Soybean oil stocks were lower than expected and meal exports were a near two year low. Soybean meal futures were mostly lower and bean oil was mostly higher, with spread trade the big feature for both pits.
Corn was mixed, mostly lower, adjusting spreads. China bought 1.7 million tons of U.S. corn and Mexico purchased 128,000 tons, all for new crop delivery. That is the seventh business day in a row with a new sale of new crop U.S. corn for a running total of 7,099,600 tons, most of that to China. The trade is also monitoring conditions in the U.S. and Brazil. Stateside, as of Sunday, 80% of U.S. corn is planted, compared to 67% last week and the normal rate of 68%, and 41% has emerged, compared to 35% on average. In Brazil, forecasts generally have more warm, dry weather in key second crop growing areas, further reducing yield potential for that critical crop. Argentina’s corn harvest is reportedly 25% complete. Weekly export inspections were up on the week and the year, with China and Mexico leading the way. Sorghum export inspections were up on the week, down on the year, primarily to China, with a much smaller amount on the way to Mexico. DTN says three South Korean feed mills about a total of 263,000 tons of optional origin corn over the weekend. Ethanol futures were steady.
The wheat complex was lower on fund and technical selling. Minneapolis led the way down on forecasts for more rain in spring wheat growing areas, from the northern and northwestern U.S. Plains into Canada. For spring wheat, 85% of the crop is planted, compared to 71% normally in mid-May, and 47% has emerged, compared to 36% on average. A major hard red winter crop tour gets underway this week. For winter wheat, 48% of the crop is in good to excellent shape, 1% more than last week and 4% less than last year, with 53% of the crop emerged, compared to 58% on average. World crop conditions generally look good. The USDA’s next set of production projections are out with the next set of supply and demand estimates on June 10th. U.S. wheat export inspections were up on the week and the year, the Philippines and Nigeria were the biggest destinations, with the 2020/21 pace still slightly ahead of 2019/20. The new marketing year for wheat starts June 1st. France’s ag ministry says 79% of that nation’s soft wheat crop is in good to excellent condition. DTN says Taiwan bought 89,425 tons of U.S. milling wheat.