Corn manages to hold firm as soybeans consolidate
Soybeans were mixed, mostly steady to weak, unable to follow through after a firm start to the session. Beans consolidated following Wednesday’s strong gains which were sparked by the surprising USDA quarterly stocks number. Weekly export sales were solid, led by China and unknown destinations, and Egypt bought 120,000 tons of 2020/21 U.S. beans ahead of the open. There’s been a soybean export sale announced everyday this week for a running total of 653,300 tons, but none have been directly to China. Soybean meal was higher and bean oil was lower, ringing in the first day of the 2020/21 marketing year with product spread adjustments. The USDA says the soybean crush during August was 175 million bushels, compared to 185 million in July and 178 million for August 2019. Argentina will reportedly lower soybean and meal export taxes to 30% to help bump up sales, with the duty returning to 33% in January.
Corn was modestly higher on commercial and technical buying. Corn was able to follow through after the much lower than expected stocks total, falling below 2 billion bushels. That also effectively serves as the 2019/20 ending stocks figure, but there is the potential for further adjustments. Weekly export sales were good, topping 2 million tons, mainly to unknown destinations and Mexico, and parts of South America are dry, which could limit acreage, particularly in portions of Brazil. Still, second crop planting in Brazil won’t start until next year’s soybean harvest wraps up. Ethanol futures were steady to higher. The USDA says corn for ethanol use during August was 411.080 million bushels and DDGS production was 1,805,450 tons, both down 3% from July and 10% from August 2019.
The wheat complex was lower on profit taking and technical selling. Wheat had a less bullish set of USDA numbers and gave back some of those big gains from Wednesday. Weekly export sales were solid, Mexico and Taiwan were the big buyers, and the overall pace is ahead of expectations, even as the world supply outlook remains bearish. The trade is continuing to monitor planting and development weather in the U.S. Plains, Argentina, Australia, Europe, Russia, and Ukraine. The USDA’s next set of supply and demand estimates is out October 9th. DTN says Thailand bought 70,000 tons of optional origin feed wheat. The USDA’s attaché for Morocco says that nation’s 2020 common wheat production was 1.77 million tons, with 2020/21 imports seen at 6.2 million tons, compared to 4.626 million in 2019/20. U.S. wheat is priced out of Morocco’s market, which relies mostly on the European Union and Ukraine.