Market News

Quiet, higher day for grains and oilseeds

Soybeans were higher on technical and fund buying, along with spillover from the outside markets. The dollar was lower while the Dow, gold, and crude oil were higher on easing concerns over European economic health. At this point, the trade’s pretty much just waiting for Wednesday’s USDA supply, demand, and production numbers. The trade sees increases for production and ending stocks with numbers out at 7:30 AM Central. Soybean meal and oil followed soybeans higher.

Corn was higher on fund and technical buying, in addition to the outside market direction. Farmer selling remains slow but corn has had a lot of trouble recently trying to keep upward momentum, evidenced by Monday’s trade. Traders are waiting for those USDA updates and see a slight decrease in crop size against an increase in ending stocks following the surprisingly bearish September 30 quarterly stocks update. Weekly progress and condition numbers are delayed until Tuesday by Columbus Day. Ethanol futures were higher.

The wheat complex was higher with Minneapolis leading the way up on slow farmer selling and the lower dollar. Chicago and Kansas City pretty much just followed the hard red spring market with no real fresh news of their own. Additionally, Chicago and Kansas City’s fundamentals remain bearish, and key areas of the hard red winter region received much needed rain over the weekend. On Wednesday, the trade expects a modest reduction to U.S. ending stocks. European wheat was higher on the brighter tone in the broader market. India’s Farm Secretary P.K. Basu, via Dow Jones Newswires, projects Indian wheat production at a record 86 million tons, compared to the 2010 total of 85.93 million tons. DTN reports the Philippines bought 30,000 tons of milling wheat from Australia.