Soybeans were lower on technical selling, profit taking and spillover from the outside markets after hitting five week highs earlier in the session. The dollar was higher while the Dow, gold and crude oil were lower following weaker than anticipated consumer confidence numbers. Also, while there are concerns about recent rainfall in South America, conditions are generally good. The Rosario Grain Exchange raised its 2009/10 Argentine production estimate to 52.5 million tons, up 1.7 million tons from Rosario’s previous estimate. Support came from good near term demand prospects and reports of cancellations on deliverable bean receipts ahead of the first notice day Friday. Soybean meal and oil were lower following the lead of beans. Bean oil picked up additional pressure from product spread adjustments and the drop in crude oil.
Corn was lower on profit taking, technical selling and spillover from the outside markets. Contracts were due for a correction after hitting five week highs on Monday and farmer selling has increased. Corn’s fundamentals are neutral to negative with a large supply canceling out improved ethanol demand. Losses were limited by a few early concerns over the possibility of a soggy spring delaying planting but some in the trade also pointed to 2009’s late, wet start and eventual record crop. Ethanol futures were lower.
The wheat complex was lower on technical selling, profit taking and the higher dollar. Wheat’s fundamentals are very negative with a large world supply and poor demand for U.S. wheat due to its premium over competing exporters, so there was no real backing for Monday’s gains. March Chicago and March Kansas City traded above but closed below $5 while March Minneapolis managed to hold above $5.01, keeping its premium over the other U.S. pits. European wheat was steady to weak with no real fresh news and pressure from the fundamentals; May Paris was flat and May London was down .1%. Japan’s Ag Ministry announced it won’t be issuing a wheat import tender this month due to ample supplies.
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