Market News
Grains, oilseeds finish mixed Friday
Soybeans were mostly higher on spread trade and the higher bean meal, ending the week in positive territory. Soybean meal was back in the lead for the soy complex on tight supplies, strong end user demand, and good crush margins. Soybean oil was down on profit taking and product spread adjustments. Soybeans are also watching conditions in South America. The Buenos Aires Grain Exchange says 65% of Argentina’s crop is planted with 75% of those beans in good to excellent shape. The faster than normal planting pace in Brazil is expected to lead to those beans having an earlier than usual availability on the export market. CONAB’s next set of projections for Brazil is out January 11th. China bought 132,000 tons of 2021/22 U.S. beans, their first announced purchase since December 8th, and India picked up 33,000 tons of 2021/22 bean oil for a two-day total of 53,000 tons.
Corn was mixed, mostly weak, adjusting spreads, but the most active months did finish modestly higher for the week. Planting in Argentina is slower than normal and there are dry weather issues in parts of southern Brazil, while central Brazil mostly looks good. Argentina’s government says it will control corn export volumes to limit domestic price inflation. The Buenos Aires Grain Exchange projects production at a record 57 million tons, with 48% of the crop planted and 83% rated good to excellent. The USDA’s next round of estimates is out January 12th in the monthly supply and demand report, along with the final 2021 U.S. production totals. Export demand continues to be slow, as China relies on Ukraine for near-term needs. Mexico has picked up some of that slack, but Beijing reportedly bought more corn from Ukraine in the past week. Ethanol demand is solid, continuing to be a saving grace for corn. Ethanol futures were unchanged.
The wheat complex was mixed, with Chicago mostly firm, Kansas City up, and Minneapolis down, with the most active months ending the week fractionally to modestly higher. Drought is expected to expand in parts of the southern Plains, while there are concerns about damage from dust storms in Kansas. The trade is also monitoring conditions in the northwestern Plains for white winter wheat. Parts of the eastern Midwest are expected to receive more near-term rain, having a potential negative impact on soft red winter. The USDA’s planted area numbers for winter wheat and other small grains are out January 12th. European firm Refinitiv says France’s soft wheat exports to non-E.U. nations were the lowest for November in three years due to slower demand from China, but reports have China buying French wheat this week after a decline in price. Beijing might have also purchased wheat from Australia. Russia’s economic ministry confirmed reports it will lower the February 15th to June 30th wheat export quota by 1 million tons to 8 million. Argentina’s government says it will cap wheat exports to limit price inflation for domestic consumers. The Buenos Aires Grain Exchange sees Argentina’s crop at a record 21 million tons, with harvest ongoing. The Rosario Grain Exchange has Argentina’s crop at 22.1 million tons.
