Market News

Soybeans manage mostly firm finish

Soybeans were mostly firm on speculative and commercial buying. USDA lowered the production estimate, and tightened ending stocks. Still, after the strength Tuesday, beans struggled at times, seeing spillover pressure from corn and wheat. In any event, at this point, the trade wants to see some fresh demand, especially from China. Soybean meal was higher and soybean oil was lower on product spread adjustments. According to DTN, South Korea bought 2,000 tons of non-GMO U.S. yellow soybeans.

Corn was modestly lower on fund and commercial selling. USDA lowered the production guess, limiting losses, but did raise U.S. and world ending stocks, including a cut in export demand. The Ag Department also increased the global crop projection to a new record of 860.1 million tons. Past that – the trade’s watching harvest weather and export demand, especially from China. Dow Jones Newswires reports Beijing bought 1.5 million tons of corn from an unspecified origin, with no USDA confirmation of purchase as of yet. Ethanol futures were mostly firm.

The wheat complex was sharply lower on fund and commercial selling. USDA increased domestic ending stocks, most analysts were expecting a decrease, and also raised the world supply estimate. USDA lowered demand for U.S. wheat in most categories, including big cuts for exports and feed use. European wheat was sharply lower on USDA’s global stocks estimate. Taiwan’s Flour Millers’ Association bought 43,820 tons of U.S. wheat (dark northern spring at $417.28 per ton with $39 per ton for freight and hard red winter at $395.26 per ton, cost and freight). Japan issued a sell-buy-sell tender for 50,000 tons of feed wheat and 200,000 tons of feed barley. Kazakhstan’s Ag Ministry reports grain harvest is 93.7% complete at 25.7 million tons. Australia’s Bureau of Statistics states August exports and domestic consumption were down 12% on the month but up 3.2% on the year at 1.92 million tons, and Commonwealth Bank Australia raised its production outlook to 25.2 million tons, an increase of 1.7 million tons from the August estimate. France’s AgriMer pegs 2011/12 production at 33.8 million tons, compared to 35.7 million in 2010/11.