Soybeans lower, corn mixed on mixed weather reports
Soybeans were lower on Wednesday on spread adjustments. White House support to biofuels producers could has also added bearish movement. The downward trend is also being supported by soybean oil supply/demand picture with anticipation of increased palm oil production this year. The market is still waiting for the EPA to announce blending requirements for 2021/2022. Recent forecasts have been bearish on soybean prices with rain in the forecast for several key soybean growing states. That trend could reverse with much of the Midwest expected to have hot temperatures in the near future.
Corn was fully higher for most of the day on Wednesday before turning mixed around midday after three days of selling because of possible rain in the forecast. New crop corn saw short covering as traders look at hot, dry weather to impact the crop in many key corn growing states. But moisture could be coming to parts of the eastern corn belt in the extended forecast. Monday, Brazil’s ag minister said the country would be open for U.S. corn imports soon with its second crop corn losing yield potential because of drought.
Warmer weather this week is bullish for the wheat complex after slowdowns to the early part of harvest last week from rainfall. But movement in the value of the dollar is limiting upside trade, causing losses. July Kansas City was the only contract that traded lower on the day with a $0.02 drop reaching $6.10. The July Chicago contract made a moderate gain of $0.01 and ¼ at $6.62. July Minneapolis led the wheat complex gaining $0.12 and ½ on Wednesday bringing it to $7.60.