Market News

Export demand supports soybeans, corn

Soybeans were higher on commercial and technical buying. Weekly export numbers were bullish with sales and shipments ahead of the pace to meet USDA estimates. China and unknown destinations continue to be among the leading buyers of U.S. beans. There was more talk of new sales to China Friday, but nothing was made official. For the 2015/16 marketing year, Beijing says soybean imports totaled 82.5 million tons. The USDA expects 2016/17 imports by China to be 86 million tons. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was higher on commercial and technical buying, with December closing at a more than two month high. Export sales were down from last week, but the pace is still ahead of what’s needed to meet projections for the marketing year. Near term harvest conditions generally look good in most areas. The trade’s waiting for new prevented planting numbers from the Farm Service Agency. Ethanol futures were higher, following Thursday’s lower EIA production and stocks figures. Planting activity is ongoing in South America, with Argentina expected to increase corn acreage at the expense of beans.

The wheat complex was mostly higher supported by commercial and technical buying. There’s a lot of wheat available, domestically and globally, but export demand has been good. Weekly sales were strong while shipments were a little bit slow. December Chicago had its highest close in nearly two months. The only wheat contract to finish in the red was December Minneapolis. Taiwan bought 81,000 tons of U.S. milling wheat. Egypt purchased 120,000 tons of wheat from Romania and 60,000 tons from Russia.