Market News
Soybeans, corn up with harvest delays in some areas
Soybeans were higher on fund and technical buying. Beans did dip during the session, but closed higher, with heavy rain delaying harvest activity in parts of the eastern Midwest. Harvest conditions generally look favorable in other parts of the region. Still, near freezing conditions in some western areas could be detrimental to late developing crops, trimming yield potential. There’s been no confirmation of rumors China bought U.S. soybeans earlier this week. Imports from the U.S. by China, including ag goods, have hit $100 billion, half of the target in the phase one trade agreement between the world’s largest economies. Beans are watching early planting activity in South America. Argentina’s Ag Ministry says that nation’s domestic soybean crush for August was 3.6 million tons, down more than 7% from July, the third month in a row with a decline, but up 4% on the year. Argentina is the world’s biggest exporter of soybean products. Soybean meal was mixed, adjusting spreads, and bean oil closed higher, following world vegetable oils, while shrugging off an email containing fake RVO numbers.
Corn was higher on fund and technical buying. Corn continues to watch harvest progress in central and western areas against delays in portions of the east. Parts of Argentina and Brazil have received rain but will need more as planting advances. That’s up in the air, so to speak, ahead of the rainy season with an expected La Nina pattern. Issues with export movement out of the Gulf continue to be a negative, but operations are slowly coming back on-line. The USDA’s weekly export numbers are out Thursday morning, with any potential demand from China expected to be watched closely. Ethanol futures were unchanged. The U.S. Energy Information Administration says ethanol production last week averaged 926,000 barrels a day, down 11,000 on the week, but up 20,000 on the year, while stocks were higher for the first time in eight weeks at 20.111 million barrels, an increase of 101,000 from the previous week and 114,000 from a year ago.
The wheat complex was higher on fund and technical buying. Parts of the U.S. Plains will need more rain to boost hard red and white winter wheat planting. The USDA’s small grains summary is set for the 30th, along with quarterly stocks, while the next set of supply, demand, and production numbers is out October 12th. Outside markets were generally more friendly to commodities and wheat had some spillover from a limit up move in nearby oat contracts. Oats are expected a bullish set of small grains production numbers at the end of the month. The trade is also monitoring winter wheat planting conditions in Russia and Ukraine, along with development weather in Argentina and Australia. The USDA’s attaché for the Philippines estimates 2020/21 wheat imports at 6.113 million tons, down from the 7.065 million in 2019/20, but potentially rising to 6.2 million tons in 2021/22. The new marketing year in the Philippines kicked up July 1st.
