Market News

Soybeans rebound higher, snapping an eight-day losing streak

Soybeans finished the day higher, ending eight consecutive days of losses.  Soybean oil also finished the day higher, and nearby soybean meal was up.  There have been some decent flash sales reported by the USDA recently.  The market will keep an eye on Thursday’s update from the department.  The trade continues to look for signs of soybean purchases from China, but there hasn’t been anything confirmed.  Weather continues to be a mixed bag for crop development.  Crude oil was also higher on Wednesday, amid news about escalations in the Middle East.

Corn finished the day mostly higher, falling off the day’s highs.  The market continues to monitor crop development weather in the U.S., and harvest activity out of South America.  Ethanol production was steady on the week, but corn usage is less than a percent ahead of last year.  The trade is expecting an increase in projected South American production in Thursday’s update from the USDA.  The market is also monitoring other world news, specifically rising tensions in the Middle East.

The wheat complex was mostly higher Wednesday.  The trade continues to monitor harvest updates for the winter wheat crop and monitoring quality as there are some concerns rainfall could have had an impact.  The recent decline in wheat prices has made US wheat more attractive on the global market.  Harvested area is expected to decline due to higher energy costs, and there is also some yield uncertainty because of weather patterns. A slight cut to world reserves is expected in Thursday’s report from the USDA, but nothing that would indicate a shortage for global supplies.