Soybeans were sharply higher, hitting new two and a half week highs on technical and speculative buying, along with spillover from wheat and corn. The trade continues to keep an eye on yield estimates with Allendale’s projection down and Informa’s up from USDA’s most recent guess. The USDA’s next supply and demand update is out Friday, September 10 with the private firm estimates so far varying. Overall, the nearby supply remains tight and even with a possible record U.S. crop and probable increase in South American acreage, supplies should remain pretty tight in the coming crop year. Soybean meal and oil were higher, following the lead of beans.
Corn was sharply higher, hitting fresh 23-month highs on fund and technical buying. Allendale and Informa both expect USDA to lower its yield estimate in the upcoming supply and demand numbers, with Informa in particular expected to make a big cut following a widely variable growing season. Also, the trade sees the Ag Department raising its feed demand guess, export use estimate and ethanol demand projection. Ethanol futures were higher. Commodity futures markets are closed September 6 for Labor Day.
The wheat complex was sharply higher on fund and technical buying, along with the lower dollar. Ahead of the open, unknown destinations bought 275,000 tons of U.S. hard red winter and Egypt picked up 100,000 tons of U.S. hard red winter. Also, the trade expects USDA to lower the global production estimate while increasing U.S. exports. German firm F.O. Licht has the global crop at 641.2 million tons, down 3.3% from their August estimate. European wheat was higher on the general shift in fundamentals; November Paris was up .9% and November London was 2.9% higher. According to Ukraine’s Ag Ministry, as of September 1, the grain harvest totals 29.57 million tons, 19% below a year ago, with roughly 81% of the crop harvested. UkrAgroConsult adds August grain exports were much bigger than expected despite unofficial export restrictions at 1.32 million tons, including 428,561 tons of wheat. Japan bought 23,000 tons of food wheat in a sell-buy-sell tender and is tendering for 30,000 tons of feed wheat.
Latest: 
