Market News

Soybeans end week on solid note

Soybeans were higher on commercial buying and short covering. Contracts followed through on Thursday’s gains, supported by the solid near term demand outlook. The market’s waiting for South American supplies to hit the market. Crop development and harvest conditions in South America look good. The arrest of former Brazilian president Lula was cited by some analysts as an additional supportive factor. Soybean meal and oil followed beans higher. FC Stone projects Brazil’s 2015/16 soybean crop at 98.6 million tons, up from the previous guess of 98 million.

Corn was modestly higher on commercial buying and short covering, along with spillover from beans. Corn’s also watching weather in South America and pre-planting conditions in the U.S. Cornbelt. The market’s getting ready for Tuesday’s USDA supply and demand update. Ethanol futures were higher. FC Stone estimates Brazil’s first corn crop at 28.19 million tons and the second crop at 56.04 million. Those are both above Stone’s prior projections.

The wheat complex was mostly higher on commercial buying and short covering, in addition to the lower dollar. The fundamentals are bearish with a large supply and slow export demand, but there is commercial interest at current price levels. The trade’s watching weather as the winter crop comes out of dormancy. Thailand bought 135,000 tons of Black Sea origin feed wheat and the Commodity Credit Corporation purchased 34,000 tons of U.S. hard red winter for distribution in Ethiopia.