Market News

Grains and oilseeds see solid bounce

Soybeans were higher on technical buying, short covering and spillover from corn and crude oil. There was no real fresh news and beans were due for at least some kind of a bounce after the recent losses. That said – the fundamentals remain bearish and the trade’s focused on harvest, which pulled contracts down from the session highs. Soybean meal and oil were higher, following beans, with meal outgaining oil on product spread adjustments. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are placed at 600,000 to 850,000 tons, meal is seen at 75,000 to 200,000 tons, and oil is pegged at 5,000 to 15,000 tons.

Corn was higher on short covering, commercial buying and oversold signals, along with the more stable outside market trade. Corn was due for a bounce, setting the stage with Tuesday’s lower but still above support close. Corn’s also watching the harvest with yields ranging from better than expected to as bad as anticipated. Ethanol futures were higher. According to Dow Jones Newswires, Taiwan passed on a tender for 60,000 tons of corn, citing high prices. Weekly U.S. corn sales are estimated at 600,000 to 1.3 million tons.

The wheat complex was higher on short covering and technical buying. Fundamentals remain bearish, so trade was pretty much path of least resistance type activity. Chicago’s trying to keep up with corn, Kansas City is waiting for forecasted rainfall in the Southern Plains, and Minneapolis is on the lookout for new hard red spring demand. European wheat was higher on oversold signals. Weekly U.S. wheat sales are expected to be between 300,000 and 650,000 tons.