(Ag Web) – US soybeans, wheat and corn rose on Wednesday as traders took positions ahead of a USDA forum this week which is expected to shed light on what crops US farmers are planting for this summer’s harvest. But, gains were limited by huge new soybean crops expected in South America.
US soybeans edged up for the first time in four sessions on Wednesday to move away from a three-week low, though ample global supply capped gains.
Traders are awaiting acreage forecasts from the USDA forum to gauge an expected drop in US wheat sowings and a shift from corn towards soybeans. There are very wide ranging ideas about what the changes in US sowings will be this season, with estimates of the switch from corn into soybeans from 2 million acres to as much as 5 to 6 million acres.
The US has crushed an unprecedented amount of soybeans since the harvest began last fall, but there have not been as many buyers as processors had hoped for, and this could end up burdensome on domestic soybean supply. Data released by the National Oilseed Processors Association showed that its members crushed 160.621 million bushels last month, which marked the third busiest January on record and edged analyst estimates of 159.141 million.
The government report Export Inspections of US wheat in the latest week at 558,252 tonnes, topping a range of trade expectations for 350,000 to 550,000 tonnes. Corn inspections were 1,152,233 and soybeans came in at 1,076,390.
A Libyan state grain buying agency has again delayed the offer deadline in an international tender to purchase 100,000 tonnes of milling wheat, 50,000 tonnes of durum wheat and 75,000 tonnes of yellow corn this time to February 28th European traders said on Wednesday. The deadline for the tender, which also seeks 75,000 tonnes of feed barley and 25,000 tonnes of soymeal was February 19.
Brazil rain favored Rio Grande do Sol & Mato Grosso yesterday, not excessive but persists through the week; rains increase in C-S Brazil through the weekend and early next week expanding minor harvest delays. Showers expand to ease dryness in NE Brazil; locally heavy rain fell in S Buenos Aires in Argentina yesterday but excessive wetness still very limited.
Global stocks hit record highs on Wednesday, topping 2016’s gains just two months into 2017, while the dollar rose before Federal Reserve; minutes that will be scoured for clues about the next US interest rate rise.
