November soybeans ended the day (Monday) down two cents. The soybean complex pushed through another export inspection report and deflected news of cancelled commitments. A market analyst talks about the future of the U.S. soy market.
The U.S. Department of Agriculture – Agricultural Marketing Service on Monday released its weekly Export Inspections report. Zaner Ag Hedge market strategist Brian Grossman says the U.S. grains market recorded good activity for the week ending June 19, excluding China.
?We are seeing pretty good activity, excluding China, which did come out with a cancellation of new crop soybeans by 165,000,? Grossman said. ?But, (the) market (is) taking it with a grain of salt here, down ? cent in beans and up 1 ? in corn. Not a lot of activity on the board given that it is a new start to the week and kind of a blow to the psyche with China making that cancellation.?
The U.S. welcomed export activity from a couple, different out-of-country customers, nothing new outside of recent weeks? activity. Grossman says export inspections fell short of expectations. However, he remains optimistic of corn and soybean exports meeting USDA?s whole-year goal.
?Corn came in below what we need on a weekly basis,? Grossman said. ?We would like to be seeing it at 1.7 million metric tonnes; we came in at 1.3, so a little bit of catching up to do. But, we also saw USDA raise that export number on the last WASDE report. We are showing over 79.5% mark. It?s disappointing on the number, but (we) should be able to catch up.?
?Soybeans, not bad given everything that?s going on. Seven-hundred-twenty-two-thousand reported today. We should be seeing that number over the 800,000 mark to reach USDA?s target. Again, we still have that whole quarter to go,? Grossman said.
Grossman says the key takeaway from this week?s report is, ?we have excellent demand? and ?tariff news is old news for the market, at this point.? Analysts will continue to monitor demand and weather as the week progresses.
