Market News

Outside markets support corn and soybeans

Soybeans were higher on fund and technical buying, along with spillover from the outside markets. The dollar was lower, while the Dow, gold, and crude oil were higher, and the cash basis remains firm thanks to slow farmer selling. USDA reports 80% of soybeans are harvested, compared to 91% last year and 71% on average. Soybean meal and oil were higher on that supportive tone in the broader market and spillover from beans. According to China’s Ministry of Commerce, soybean imports for September were 4.127 million tons, down 11% from September 2010, with the U.S. share up 2.3% on the month at 285,963 tons. For the year to date, Chinese soybean imports are 37.705 million tons, down 6% on the year, with 15.748 million tons of the total U.S. soybeans. So far this year, Brazil is Beijing’s leading supplier at 16.457 million tons.

Corn was higher on technical and fund buying, in addition to spillover from beans and the outside markets. Still, contracts closed below the day’s highs and it looks like commercial support is drying up. According to USDA, 97% of corn is mature, compared to 100% last year and 97% on average and 65% is harvested, compared to 81% last year and 51% on average, with 54% of the crop rated good to excellent, up 1% on the week. Ethanol was mixed with nearby contracts higher. The U.N.’s Food and Agriculture Organization expects Saudi Arabia to purchase 2.2 million tons of corn during the 2011/12 marketing year. China’s Ministry of Commerce states corn imports for September were 181,094 tons, with all but one ton U.S. origin, with year to date purchases at 633,893 tons, down more than 48% from January through September 2010.

The wheat complex was mostly higher. Chicago and Kansas were up on short covering, fund buying, and spillover from the outsides. Minneapolis was mostly lower on profit taking and a lack of new demand news. USDA states 82% of the winter crop has been planted, compared to 87% last year and 84% on average with 56% emerged, compared to both 63% last year and on average, and in the first rating of the season, 47% of the crop is called good to excellent, same as first rating this time a year ago. European wheat was up following a good weekend debt talk meeting between E.U. leaders. According to Russia’s Ag Ministry, 95.3% of grains have been harvested with the running total at 94.6 million tons, Ukraine’s Ministry reports their harvest is at 90% with 47.3 million tons collected, and Kazakhstan’s Ag Ministry says 99.5% of this year’s harvest is complete with the total at 28.8 million tons. The U.N.’s FAO wing projects Saudi Arabia’s 2011/12 wheat crop at 1.1 million tons, down 13% on the year as Riyadh phases out water intensive crops with imports seen at 2 million tons. Rabobank Australia, via Dow Jones Newswires, sees that nation’s wheat crop at 25.7 million tons, noting an ample supply of new crop and lower than expected protein content in some of this year’s early harvested grain. Also according to Dow Jones, Egypt’s General Authority for Supply Commodities is set to resume imports of wheat from Ukraine.