Soybeans were sharply lower on technical and speculative selling, along with spillover from the outside markets. The dollar was higher while the Dow and crude oil were sharply lower on concerns over Europe’s economic health. There’s continued pressure from the tail end of South America’s harvest and demand switching from the U.S. to Argentina and Brazil, which is tied in to the strength of the dollar as a higher dollar makes U.S. goods more expensive on the export market. Soybean meal hit a three week low and bean oil notched a three month low on spillover from beans and the drop in the outside markets. According to the Buenos Aires Grain Exchange, 74.5% of the soybean crop is harvested. Brazil’s National Commodity Supply Corp. (CONAB) pegs that nation’s crop at 67.9 million tons, 18.7% more than 2008/09. Bunge sold 58,000 tons of Brazilian soybeans to Taiwan’s Breakfast Soybean Procurement Association.
Corn was lower on fund and technical selling, along with spillover from beans and the outside markets. Traders are watching the weather and waiting for confirmation or denial of new export sales to China. USDA’s weekly export sales were a new marketing year high and included sales of more than 240,000 tons to unknown destinations, potentially China, in addition to last week’s announced sale of 115,000 tons to China. Contracts tried to rally, but with the extreme negativity in beans and the outsides, couldn’t hold on to gains. Ethanol contracts were mixed. The Buenos Aires Grain Exchange states 70% of Argentina’s corn crop has been harvested.
The wheat complex was lower on fund and technical selling, along with profit taking and spillover from the outside markets. Fundamentals remain extremely negative which was backed up by the weekly export sales report. Losses were limited by some uncertainty over weekend weather outlooks with some forecasts showing a very cool and wet pattern in portions of the Plains, including a potential freeze. European wheat was higher on the new 14 month low in the Euro; November Paris gained 2.3% and November London was up 1.5%. The Kansas Wheat Quality Council pegs that state’s hard red winter crop at 333.5 million bushels with an average yield of 40.7 bushels per acre, compared to 2009’s totals of 369.6 million bushels with an average yield of 42 bushels per acre. The Buenos Aires Grain Exchange reports wheat planting in western and southern Argentina has been limited by dry conditions.
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