Soybeans, corn, wheat rebound

Market News

Soybeans, corn, wheat rebound

Soybeans were higher on commercial and technical buying. Export sales were down on the week, but still well over a million tons with China leading the way against a significant cancellation by unknown destinations. Most forecasts have a shift to drier weather in southern Brazil and Argentina, in-line with La Nina conditions. The Buenos Aires Grain Exchange says that weather pattern could be a “big challenge” for production in Argentina. 56.1% of Argentina’s soybean crop is planted. Soybean meal was mostly lower on spread trade and profit taking. Bean oil was higher, supported by commercial buying. India, the world’s biggest purchaser of vegetable oils, bought 20,000 tons of 2021/22 U.S. soybean oil ahead of the open. China’s National Grain and Oil Information Center says soybean product stocks dwindled last week because of increased demand for feed and preparations for the spring festival holiday.

Corn was higher on commercial and technical buying. Corn is also watching conditions in South America, while export sales were a marketing year high following the largest single day purchase by Mexico on record. Overall, sales are slower than expected, but that’s partially canceled out by strong ethanol demand. China continues to favor corn from Ukraine over the U.S. AgRural lowered its outlook for Brazil’s corn crop by 1.1 million tons to 114.4 million due to recent dry weather in southern Brazil. Brazil’s critical second corn crop, the largest of the three, is planted after soybeans are harvested. The Buenos Aires Grain Exchange says 39.5% of Argentina’s corn crop is harvested. Strategie Grains estimates 2021/22 European Union corn production at 68.3 million tons, a half a million more than a month ago, citing record yields for France. Ethanol futures were unchanged.

The wheat complex was higher on commercial and technical buying. The complex bought back part of Wednesday’s drop with help from a marketing year high in export sales, mainly to Mexico and Japan. Just over the halfway point of 2021/22, wheat sales are behind 2020/21, even with tighter global supplies and Russia’s export tariff. Most forecasts have continued dry conditions in the southwestern U.S. Plains, which will likely have some impact on hard red winter. That’s compared to recent rainfall in the eastern southern Plains, northwestern U.S. Plains, and eastern Midwest. Strategie Grains projects 2021/22 soft wheat production for the European Union at 129.3 million tons, compared to 129.4 million in November, with exports outside of the bloc at 31.5 million tons, compared to 30.4 million last month. The Buenos Aires Grain Exchange has Argentina’s wheat crop at a record 21 million tons, with harvest ongoing. Australia’s wheat harvest is also ongoing, with some concerns about quality due to recent heavy rainfall.