Soybeans fail to hold on to early gains
Soybeans ended the Friday session lower, unable to hold on to early gains. Soybeans have been oversold, but it’s hard to get any kind of traction right now. Export sales of just 9 million bushels are a marketing year low. Sales and shipments of soybeans are 246 million bushels behind a year ago. If the China phase-one summer buying spree doesn’t come through, DTN quotes analysts saying U.S. soybean sales projections could be 150 million bushels to 200 million bushels too high. It’s also bearish that the Chinese economy fell by 6.8 percent in the first quarter.
Corn ended higher despite the low price of crude oil Friday. Corn futures also recovered from being oversold. Corn has maintained some of its early gains on hopes that the gradual reopening of the U.S. economy could lead to higher demand for gasoline and ethanol, according to DTN. Corn export sales are moving in the right direction, but sales are 22 percent below a year ago. A combination of sold and shipped corn is at 34.7 million metric tons compared to 44.7 million metric tons a year ago now. For at least the next month and a half, U.S. corn is expected to be at a price advantage to Argentine corn. Meat processing concern has traders fearful of a back-up in supplies and weaker feed demand.
Wheat futures ended Friday mostly higher. Egypt is buying 240,000 metric tons of wheat, but it’s from France and Russia. The U.S. wheat was offered at a $3-a-ton discount to France, but freight costs made the French and Russian wheat more attractive. Both the U.S. hard red winter wheat growing region and Russian/Black Sea weather are better, with good moisture projected the last half April. The first half of May looks good for Ukraine and southern Russia. Meanwhile too much rain continues in the Delta and southern Midwest soft red wheat areas.