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Harvest pressure sends corn, soybeans lower

Soybeans were modestly lower on profit taking and spillover from corn. Also, there was continued harvest pressure, outside markets were a negative and the fundamentals remain bearish. On average, the trade expects a slight increase in USDA’s production estimate Wednesday, the 12th. China bought U.S. beans for the second day in a row, 106,000 tons for 2011/12 delivery, but it had little to no effect. Soybean meal was mostly firm and oil was up on end of the week position squaring.

Corn was modestly lower on harvest pressure and profit taking. There was no real fresh news and the trade’s pretty much just marking time until Wednesday’s USDA numbers. Ukraine’s repealed its export tax on corn starting July 1, 2012 and France raised its production estimate to 14.9 million tons, up 800,000 from its previous guess. Ethanol futures were mixed with November 2011 through December 2012 lower.

The wheat complex was mostly lower. Chicago was down with Ukraine also suspending wheat export duties in the coming year. Kansas City was lower on forecasts for rain in the Southern Plains but, if that doesn’t happen, consequences for the hard red winter crop could be severe. Minneapolis was supported by its bullish supply and demand fundamentals. European wheat was lower on impending end of the Ukrainian export duties. Tunisia bought 75,000 tons of soft wheat and 75,000 tons of durum.

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