Market News

Commercial demand supports soybeans, corn

Soybeans were higher on commercial and technical buying. Recent rainfall in South America has been mixed, too much in some areas, not enough in others. On the balance, crops appear to be in generally good shape at this point and there’s a way to go in the growing season. The USDA’s new supply and demand estimates are out Thursday at Noon Eastern/11 AM Central. Soybean meal and oil followed beans higher.

Corn was higher on commercial and technical buying. Corn’s also watching South America with rain expected in some key growing areas this week. Contracts were down early before being pulled back into the black by demand, soybeans, and wheat. Unknown destinations bought 112,500 tons of 2016/17 U.S. corn. The USDA’s final 2016 production totals for corn and beans are also out Thursday, along with the weekly export sales report. Ethanol futures were lower.

The wheat complex was higher on short covering and technical buying, along with the lower dollar index. Unknown bought 120,000 tons of 2016/17 U.S. hard red spring, but the supply side of the market remains very bearish. Winter wheat acreage estimates are also out Thursday at Noon Eastern/11 AM Central. Acreage is expected to be down on the year, the question is how big the decline will be.