Soybeans move lower late, corn closes mixed

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Soybeans move lower late, corn closes mixed

Soybeans closed modestly lower on profit taking and technical selling, unable to hold onto the session’s gains. Unknown destinations canceled on 100,000 tons of old crop U.S. soybeans ahead of the open and near-term crop weather is seen as non-threatening in many areas. The hot weather being experienced in large swaths of the region has helped the crop catch up on growing degree days and some areas will see beneficial rain, but if the pattern hangs on for an extended period of time, it could impact yields. IHS Markit pegs 2022 U.S. soybean acreage at 88.735 million acres, compared to 90.955 million from the USDA’s March projection, with production of 4.57 billion bushels and average yield of 52 bushels per acre. That export cancellation might be China switching to Brazilian soybeans. The USDA’s weekly numbers are out Thursday morning. Contracts were up for most of the day on the bullish crush margins and fundamentals. Also, soybean meal moved off of its highs late and soybean oil was down on drops in palm and crude oil. The NOPA says member firms crushed 171.077 million bushels of soybeans in May, slightly below expectations, but up on the year and record large for the month. Argentina’s government is temporarily raising its biodiesel blend level to compensate for a diesel shortage.

Corn was narrowly mixed after spending most of the session in positive territory. Development conditions are generally good, but an extended hot, dry period in parts of the region would have some impact on yields. IHS Markit has 2022 U.S. corn planted area at 90.965 million acres, compared to the USDA’s earlier estimate of 89.49 million, with production of 14.93 billion bushels and an average yield of 179.5 bushels per acre. The USDA’s planted area and quarterly stocks reports are out on the 30th. Ethanol production was up on the week, while the domestic supply tightened. The U.S. Energy Information Administration says production averaged 1.06 million barrels a day, up 21,000 on the week and 35,000 on the year, with stocks at 23.197 million barrels, a decrease of 439,000 from the prior week, but an increase of 2.595 million from a year ago. China has held its 2022/23 corn production estimate at 272.56 million tons with imports of 18 million tons.

The wheat complex was lower on fund and technical selling. The winter wheat harvest is ongoing, with widely varied yield numbers reported in the southern U.S. Plains. The USDA’s next set of production numbers is out July 12th. For spring wheat in the northern Plains and Canada, weather is being watched closely after the widespread planting delays earlier in the season. IHS Markit expects the USDA to put domestic spring wheat planted are at 10.49 million acres, compared to the pre-planting projection of 11.2 million acres. More talks related to Russia’s invasion of Ukraine are reportedly underway. That involves not only the conflict itself, but also the ramifications for Ukraine’s ag industry, including harvest, planting, and exports. Some Asian buyers are reportedly looking to France and Romania to fill wheat needs due to the absence of Ukraine from the market. The U.S. is looking at building temporary silos for Ukrainian grain on that nation’s borders. Wheat harvest activity is underway in parts of Kazakhstan, with that nation’s government extending wheat and wheat flour export quotas of 550,000 and 370,000 tons, respectively, until September 30th.