Market News

Soybeans firm on follow through buying

Soybeans were modestly higher on commercial and technical buying. At 90% complete, the end of this year’s soybean harvest is in sight ahead of Thursday’s USDA numbers, due out at Noon Eastern/11 Central. It’s been a mixed year for planting, development and harvest, so there are a lot of uncertainties about what Thursday’s reports may bring. Weekly export sales are also out Thursday, at 8:30 Eastern/7:30 Central. Forecasts have more much needed rain in dry parts of Brazil, against drier conditions in other portions of Brazil and much of Argentina’s soybean growing areas. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was narrowly mixed, with just fractional day to day changes. The corn harvest is 70% complete, with colder, but drier, weather expected in many areas this week. Officially, only a handful of states are above 90% complete, but that weather should help speed things up, at least in parts of the Midwest and Plains. Unknown destinations bought 130,000 tons of 2017/18 U.S. corn, after buying the same thing Monday. Ethanol futures were mostly weak ahead of Wednesday’s production and stocks numbers from the U.S. Energy information Administration. Corn’s also watching the soybean planting pace in South America and the potential impact on second crop corn.

The wheat complex was mixed with Chicago and Kansas City modestly lower on profit taking and Minneapolis mostly modestly higher on spread trade and commercial buying. Planting and emergence are close to average and the winter condition rating improved over the past week. The trade has a lot of questions about U.S. winter acreage totals, so there are a lot of questions over to what exactly the USDA’s weekly numbers mean. It’s a safe bet the supply and demand numbers will be bearish, especially on the global supply side, but there could still be some production adjustments for export competitors. Japan is tendering for 132,390 tons of food wheat from the U.S., Canada, and Australia. Allendale says China sold 3,765 tons of 2013 wheat from reserves, out of a total 124,216 offered.