Market News

Grains and oilseeds lower on dollar

Soybeans were lower on fund and technical selling, along with spillover from the outside markets. The dollar was up and crude oil was down sharply ahead of news out of the E.U. debt meeting. Past that – there was no real fresh supportive news and the path of least resistance right now is down. Soybean meal and oil were lower on spillover from beans and the general broader market uncertainty. China’s National Grain and Oils Information Center projects 2011/12 soybean imports at 56 million tons, which would be up 7% from the 2010/11 total. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are pegged at 500,000 to 1 million tons, meal is seen at 75,000 to 250,000 tons, and oil is placed at 5,000 to 15,000 tons.

Corn was lower on technical and fund selling, in addition to the outside market pressure. There was no real new news for corn either and there’s a continued lack of commercial buying interest. At this point, the pit’s waiting for E.U. news and the weekly export sales numbers. Ethanol futures were lower. USDA weekly export sales report is expected to show sales between 600,000 and 900,000 tons, well below the previous week’s total.

The wheat complex was lower on fund and technical selling, along with the higher dollar. The supply and demand fundamentals remain bearish, especially on the global supply side of the ledger. Egypt bought 120,000 tons of wheat from Russia at $243.44 per ton and Kazakhstan increased its export projection for the current marketing year from 10 million to 15 million tons. European wheat was lower on profit taking and the lower U.S. activity. According to Russia’s Ag Ministry, 96% of the expected acreage is harvested with the running total at 95 million tons. The Canadian Wheat Board has filed a lawsuit against Canada’s government in an attempt to keep their control of the western Canada grain export market. Japan issued a sell-buy-sell tender for 90,000 tons of feed wheat and 200,000 tons of feed barley. Australia’s Bureau of Statistics reports wheat stocks at the end of September were 8.3 million tons, down 15% on the month but up 61% on the year. Weekly U.S. wheat sales are estimated at 300,000 to 500,000 tons.

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