Market News
Soybeans higher on demand optimism
Soybeans shrugged off pressure from the drop in soybean oil and crude to finish the day higher. The market remains optimistic that China will begin purchasing soybeans, but there hasn’t been any official reports of sales. The recent decline in prices in the US has reduced Brazil’s price advantage on the global market, and US beans are more competitive, especially for the fall. The USDA’s next supply and demand report is out July 10th, with CONAB’s updated outlook for Brazil slated for July 14th. Soybean meal futures were higher, providing additional price support.
Corn was mixed, mostly higher. There isn’t a lot of news driving the market. The trade continues to monitor crop development weather, the USDA’s good to excellent rating was a point higher to 68 percent nationally, but state-by-state ratings vary. Harvest is still underway in South American and record crops are expected. The big question about the acreage update is how much faith the trade and farmers will put in the USDA’s numbers because of last year’s issues and the low response rate for the planted area estimates earlier this year.
The wheat complex was mixed. USDA has 25 percent of the winter wheat crop harvested, that’s well above the five-year average. But yields aren’t great. The spring wheat crop is rated 55 percent good to excellent. US wheat is still more expensive than its competitors on the global market. Wheat’s watching a combination of planting, harvest, and development in Argentina, Australia, Canada, Europe, Russia, and Ukraine.
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