Market News

Soybeans close with slight gains

 

Soybeans were modestly higher on fund and technical buying. Contracts had an oversold bounce and unknown bought 210,000 tons of new crop U.S. beans. Unknown also bought 120,000 tons of new crop U.S. on Monday. There are still a lot of questions about China and demand, limiting gains. Outside markets provided some early support, but as the Dow moved down from the strong open, soybeans followed. China did lower its key interest rate by a quarter point and cut the bank reserve requirement by a half point. The trade’s also waiting for any sign of a domestic interest rate adjustment by the U.S. Fed. Soybean meal and oil bounced with beans.

Corn was modestly lower on technical selling and profit taking. Contracts were up at times, but couldn’t follow through after managing a slight gain Monday. The crop is developing close to average, with the condition rating holding steady over the past week at 69% good to excellent. Corn’s watching the weather, with conditions considered non-threatening, if a little cooler than usual over the near term. Forecasts for the coming week generally have a return to more seasonal temperatures. Ethanol futures were steady to firm.

The wheat complex was lower on fund and technical selling, along with the higher dollar. The spring wheat harvest is way ahead of average at 75% and weather in most areas is conducive for harvest activity. That’s excepting the wildfires in the northwestern U.S. Plains. The fundamentals remain bearish with a large available world supply and slow export demand for U.S. wheat. South Korea bought 65,000 tons of optional origin feed wheat.