Soybeans, Corn End Lower Wednesday
Soybeans and corn finished lower Wednesday as investors’ opinion of record production outweighed strong demand for U.S. supplies.
The Department of Agriculture, participants on the crop tour, and brokerage Allendale have all forecast corn and bean production at records.
The latest estimate from Allendale pegged bean yields at 48.5 bushels an acre in its annual survey of producers and production at 4.03 billion bushels. That compares with the Department of Agriculture’s estimate of 48.9 bushels an acre and output of 4.06 billion bushels. Corn production is estimated at 14.9 billion bushels on yields of 172.6 bushels an acre, just below USDA’s outlook for 15.2 billion bushels on yields of 175.1 bushels an acre, according to Allendale.
Private exporters sold 126,000 metric tons of soybeans to unknown buyers, the Department of Agriculture said in a report on Tuesday. A separate sale of 393,000 tons, also to unknown buyers, was reported on Monday.
Total commitments from overseas buyers to purchase U.S. corn and beans are both running 5% ahead of last year at the same time as the 2015-16 marketing year comes to a close today, according to the USDA. Wheat sales in the current marketing year that started on June 1 are 18% ahead of where they were a year ago.
At the close, the September corn futures settled 2½¢ lower at $3.01½, while December futures finished ¼¢ lower at $3.15½ per bushel.
September soybean futures closed 5½¢ lower at $9.60, while November soybean futures closed 7¾¢ lower at $9.43.
September wheat futures closed 2¼¢ lower at $3.61.
September soy meal futures finished $1.60 short ton lower at $312.20. September soy oil futures closed 0.26¢ lower at 32.47¢ per pound.
In the outside markets, the Brent crude oil market is $1.63 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 74 points lower.