market news
Soybeans, corn, and wheat prices continue to trend downwards.
Soybean prices fell mainly due to spread trading and profit taking. The contract started higher but was unable to continue due to weak weekly old crop export sales and weak soybean meal price movements. Old crop export sales were down from 9.8 million bushels a week ago, with Egypt and Indonesia topping the list, and both destination unknown and China had net cancellations. Although shipments were slightly higher than needed to meet USDA forecasts for this year, global demand for U.S. soybeans remains constrained by Brazil’s market dominance and China’s response to new U.S. tariffs. Questions persist about the possibility of retaliation. New crop export sales were only 900,000 bushels, primarily to Taiwan and Malaysia, with some cancellations by Thailand. Planting delays continue in some major U.S. growing regions, with further delays expected in the coming weeks. The Buenos Aires Grain Exchange lowered its estimate for Argentina’s harvest to 50.5 million tonnes. The industry is also continuing to assess damage and crop losses in Brazil’s main state Rio Grande do Sul, where more rain is expected. Soybean meal was low, soybean oil was high, and product rewinding was widespread.
Corn prices fell due to profit taking and technical selling. Corn started strong but remained overbought, with week-old crop sales still at a solid 29.2 million bushels, down from a week ago, led by Mexico and Japan. Shipments decreased slightly, falling below the amount needed to meet USDA estimates for the current marketing year, which ends in August. All 5 million bushels of new crop sales went to Mexico. Corn is also focused on the pace of U.S. plantings and expected near-term delays in parts of the Corn Belt. There is also early talk of some producers switching from corn to soybeans due to widespread delays, but no plans have been reported. Drier and cooler patterns are expected to lead to accelerated activity in South America, where delayed rainfall and leafhopper damage have reduced corn yields to 25% compared to an average of 34%, according to the Buenos Aires Grain Exchange. There is. The industry is also monitoring second-crop stress due to hot, dry weather in central and northern Brazil. USDA’s next supply and demand estimates will be released on June 12th.thCONAB’s latest outlook for Brazil is expected the next day.
The wheat complex fell due to solid dollar trading during trading, as well as profit taking and technical selling. Recent freeze damage in Russia has caused crop losses, with some reports putting it at 1% of planted area, but this appears to have been largely factored in for now. Other global weather issues that are clearly being taken into account at this time include dry conditions in the Black Sea region and excessively wet weather in parts of Western Europe. Frost is a problem for newly planted winter wheat in some parts of Argentina. Across the United States, some soft red winter areas are too wet, some hard red winter areas are still dry, but some much-needed rain is coming in on the Plains. However, it is too late to have a significant impact on some HRW crops. A major crop tour in Kansas ended with a final yield of 46.5 bushels per acre, lower than the 50 bushels per acre that some had expected after recent improved weather in parts of the region. , significantly higher than the previous year’s statewide average of 30 bushels and the USDA average. Latest guesses for the state. Spring wheat-growing areas in the northern U.S. Plains and Canada are expected to experience patchy rain over the next week, with some areas experiencing some rain and little to no rain in others, with cooler-than-average temperatures starting this weekend. There is a possibility that it will happen. The USDA said 2.9 million bushels of old wheat were sold last week, mostly to Mexico and South Korea, and shipments are slightly ahead of expectations for the current market year, which ends this month. New crop sales were 11.2 million bushels, primarily to the Philippines and Yemen. Russia and Ukraine continue to represent important parts of the world wheat market.
