Market News

Soybeans, corn, wheat rebound

Soybeans were higher on fund and technical buying. Contracts bought back some of the recent losses, with help from a bounce in soybean products. China says it will cancel VAT tax rebates for several products imported by the U.S., including modified oils like soybean cooking oil, which could lead to higher demand for domestic produced bean oil. Soybean meal was supported by oversold signals. Soybean export sales were lower than average, with China leading the way, followed by Egypt. The Buenos Aires Grain Exchange says 20.1% of Argentina’s soybean crop has been planted. The NOPA soybean member crush for October was larger than expected at a record 199.959 million bushels, while stocks fell below pre-report estimates at 1.069 billion pounds.

Corn was higher on fund and technical buying. Corn continues to monitor the very tail end of this year’s harvest and development conditions in Argentina and Brazil. The Buenos Aires Grain Exchange says 38.6% of Argentina’s corn crop has planted. Export sales were down on the week, but still showed solid interest from unknown destinations and Mexico, and in the grand scheme of things, it was still a solid week. The USDA’s updated supply, demand, and production numbers are out December 10^th.

The wheat complex was higher on fund and technical buying. Wheat saw an oversold bounce, even with the continued strength in the dollar, which limits export demand. Sales last week were lower than average, with South Korea and Japan topping the list. Recent rain has improved U.S. winter wheat conditions ahead of dormancy, which could start soon in some areas. The USDA’s penultimate weekly crop progress and condition report is out Monday. The Buenos Aires Grain Exchange says 17.2% of Argentina’s crop has been harvested. The trade is also watching Australia’s harvest and planting and development conditions in Europe, Russia, and Ukraine.