Market News

Solid finish for corn and wheat

Soybeans ended the session very narrowly mixed, bouncing off of the lows thanks to oversold signals and spillover from wheat and corn. Past that – there was no fresh news and weekly export sales were lower than expected. Still, the cash basis is firm and soybeans managed to avoid a fourth straight lower close. Soybean meal was higher and bean oil was weak on the adjustment of product spreads. According to the Buenos Aires Grain Exchange, Argentina’s soybean planted area should be up modestly on the year but could increase more substantially if weather doesn’t cooperate for corn planting.

Corn was higher on fund and end user buying. Farmer selling remains slow and harvest has been delayed by rain in some key areas of the Cornbelt. Weekly export sales were more than 1.7 million tons, but that was at the low end of estimates and shipments are slow. Ethanol futures were mixed. Ukraine’s President signed a recently passed law ending Kiev’s export tariff on corn, wheat, and barley. Dow Jones Newswires reports 42.8% of Argentina’s corn crop has been planted, considerably behind last year at this time due to drier than normal weather during September.

The wheat complex was higher on short covering and fund buying. Kansas City led the way up on continued concerns about the much drier than normal conditions in the Southern Plains. Exports were below estimates but shipments were more than what’s needed weekly to meet USDA projections for the marketing year. European wheat was lower on broader economic uncertainties connected to E.U. debt issues and the large available supply. South Korea bought 110,000 tons of feed wheat, Bangladesh picked up 50,000 tons of wheat from India, and Japan purchased 102,652 tons of wheat (52,499 tons Canadian western red spring, 29,360 tons Australian standard white, and 20,793 tons U.S. dark northern spring).

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