Wheat continues decline
Soybeans were higher on commercial and technical buying, adding onto the week’s gains. Soybeans had continued support from strong domestic crush margins, along with mostly good export demand. That strong crush demand and commercial support helped soybean meal and oil finish higher. More U.S. planting delays are probable into the coming week and, while it is early, the trade is keeping an eye out for any potential acreage adjustments. The USDA’s next set of supply, demand, and production numbers is out June 10th. China’s General Administration of Customs says April soybean imports from Brazil were 6.3 million tons, up sharply from March as shipments pushed back by harvest and loading delays arrived at ports. Imports from the U.S. were 1.64 million tons, down on the month and the year. China’s National Grain and Oils Information Center says that nation’s edible oil consumption is expected to drop for the first time in decades because of tight global supplies.
Corn was modestly lower on fund and technical selling, furthering the week’s losses. Corn was also watching U.S. planting weather, expecting mixed progress over the next few days. The USDA’s weekly crop progress and condition numbers are out Monday afternoon at 4 Eastern/3 Central. Pressure for corn came from the drop in wheat and talk Argentina could raise their corn export quota from 30 million to 35 million tons. Argentina’s corn harvest is ongoing, with commercial production projected at 49 million tons. Corn continues to watch development conditions in Brazil, with dry weather a problem in central areas and a possible freeze in southern areas. Exports remain good and there’s solid domestic demand for ethanol and feed use.
The wheat complex was sharply lower on fund and technical selling, cementing the lower weekly finish. Export demand continues to be slow and the trade has largely factored in U.S. and world weather issues for now. That includes late arriving rains in the southern U.S. Plains, spring wheat planting delays in the northern Plains, and excessively wet conditions in parts of the eastern Midwest, along with hot weather in parts of Europe and India. The trade is also monitoring planting in Argentina, Australia, and Ukraine. Russia could harvest a record crop with a substantial increase in their sales, even with sanctions having an impact. Russia’s government says it will continue to block Ukraine’s exports, which has left grain rotting at ports damaged by the invasion. The European Union is backing a one-year suspension of import duties for grain from Ukraine. Egypt reportedly turned away a Russian boat loaded with grain stolen from Ukraine.