Soybeans were higher on commercial and fund buying. Ahead of the open, USDA made a bigger than expected cut to old crop ending stocks and the new crop was smaller than expected. USDA sees new crop exports at 1.51 billion bushels, up around 200 million on the year, and China’s expected to buy more than 60 million tons. Soybean meal and oil were higher, following the lead of beans. Brazil’s CONAB projects 2011/12 soybeans at 66.7 million tons, up on the month but down 11.5% on the year. China’s General Administration of Customs reports April soybean imports were 4.88 million tons, up 1% from March and 26% larger than April 2011, with year to date purchases at 18.15 million tons, 22.3% above this time last year. China’s National Grain and Oils Information Center expects May soybean imports to be 5.7 million tons.
Corn was lower on fund and commercial selling. USDA actually increased old crop ending stocks, reducing the feed use guess, and new crop was above estimates. That new crop guess is largely tied to the good planting progress and expectations for a yield of 166 bushels per acre and an all-time high for production. Ethanol futures were lower. According to CONAB, 2011/12 Brazilian corn production should be a record 65.9 million tons with the summer crop at 35.7 million and winter crop at 30.2 million tons. Ukraine’s Ag Ministry reports corn exports as of May 8 are 11.34 million tons.
The wheat complex was mixed in consolidation trade. USDA raised the winter wheat production estimate to 1.69 billion bushels, up 13% on the year with hard red winter up 32% and soft red down 6%. Still, the Ag Department lowered old crop ending stocks and new crop stocks were smaller than expected. Japan bought 151,416 tons of milling wheat (63,936 tons Canadian western red spring, 36,780 tons Australian standard white, 25,630 tons U.S. dark northern spring, 14,760 tons U.S. hard red winter, and 10,130 tons U.S. western white) and Taiwan bought 48,700 tons of U.S. milling wheat (30,100 tons dark northern spring and 18,600 tons hard red winter). Jordan issued a tender for 100,000 tons of wheat. According to Ukraine’s Ag Ministry, wheat sales are 4.48 million tons, up 39.2% on the year, with 2.59 million tons milling quality and 1.89 million tons feed wheat.