Soybean drop due to profit taking, enlarged market
Soybeans fell on profit taking and technical sales. Beans started rising, then lost some of the recent gains, with the broader market spinning out. The Dow Jones Industrial Average and crude oil were both significantly lower amid concerns over increasing COVID-19 cases in parts of the United States and OPEC deciding to increase production, respectively. The weather outlook for many growing areas in the north and west remains hot and dry and the beans will need a large harvest to meet demand projections, with historically tight carryover estimates for this marketing year. and the next. The USDA says 60% of U.S. soybeans are rated good to excellent, up 1% on the week, with 63% of the crop in bloom, compared to the five-year average of 57% and 23% of the harvest at pod stage. stadium, compared to 21% on average. Export inspections were down during the week and year, but 2020/21 remains on track to meet USDA expectations, with around a month and a half remaining in the year of marketing. The main destinations were Japan and Mexico. China reportedly made a regular purchase of soybeans from Argentina last week, but continues to focus on Brazilian beans due to high prices in the United States. Prices from Brazil have also increased recently due to strong export demand, especially from China. Soybean meal was down and soybean oil fell sharply due to downward movements in beans and the market in general.
Corn was mixed, with nearby stable to firm contracts and modestly declining deferred months. Corn also monitors the weather, conditions during key developmental phases are expected to cause at least some stress in some areas and limit the crop’s yield potential. As of Sunday, 65% of American corn is rated good to excellent, stable, with 56% of the crop silky, compared to 52% on average, and 8% at the dough stage, compared to 7% usually at mid- July. . Maize will need on-trend or better yield to meet demand expectations both this marketing year and next. The next USDA production estimate released on August 12e, as well as the monthly update of supply and demand. Export inspections were lower than last week and less than a year ago, but still over a million tonnes and at a pace to meet USDA forecasts. The main destinations were China and Mexico. China’s General Administration of Customs said corn imports in June amounted to 3.75 million tonnes, with cumulative purchases of 15.3 million tonnes. In Brazil, harvesting of the second crop is underway with frost damage likely on late planted maize. Ethanol futures remained unchanged.
The wheat complex was slightly higher on funds and technical purchases. Minneapolis is overbought, but continues to focus on the weather, which is hitting the spring wheat region hard, from the United States to Canada. For spring wheat, 11% of the crop is in good to excellent condition, down 5%, with the poor to very poor category at 63%, up 8% and 92% of the seeded crop, which is the five-year average. Chicago and Kansas City were on the rise, monitoring the winter wheat crop, with some areas reporting quality issues. For winter wheat, 73% of the crop is harvested, compared to a typical rate of 74%. Hot, dry weather in parts of Russia and flooding in France and Germany are also concerns for wheat. Kazakhstan to impose feed wheat export limit from August 15e, lasting six months. A month and a half into the 2021/22 marketing year, export inspections continue to lag behind 2020/21. The Philippines and Mexico were the main destinations for US wheat last week. DTN says the Philippines bought 50,000 tonnes of feed wheat from the Black Sea region.