Market News

Soybeans, corn up modestly

Soybeans were higher on light technical and fund buying, along with spillover from the outside markets. The dollar was sharply lower with the Dow, gold, and crude oil higher. Past that – there was no fresh news, pulling contracts down from the highs, but there is talk of new export demand from China. Soybean meal and oil followed beans up with meal outgaining oil on product spread adjustments. DTN and Reuters state Egypt bought 6,000 tons of soybean oil. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are pegged at 400,000 to 800,000 tons, meal is seen at 100,000 to 225,000 tons, and oil is placed at 0 to 10,000 tons.

Corn was higher on light fund and technical buying, in addition to the outside market direction. Also, the commercial and longer term fundamentals outlooks are supportive. However, there was no real new news and export demand remains a little slower than expected due to increased global competition, particularly from Ukraine. Ethanol futures were mixed. Weekly U.S. corn sales are expected to be between 350,000 and 550,000 tons.

The wheat complex was mostly lower on profit taking and fund selling against outside market influence. Chicago’s trying to keep pace with corn, Kansas City is watching weather in the Southern Plains, and Minneapolis has an eye on the export market. In any event, the overall fundamentals remain bearish, especially on the global supply side. European wheat was lower on the higher Euro and expectations for a very large clean weight Russian grain crop. Saudi Arabia bought 330,000 tons of hard wheat and Tunisia picked up 75,000 tons of durum wheat. In sell-buy-sell activity, Japan issued a tender for 60,000 tons of feed wheat and 200,000 tons of feed barley after purchasing 17,500 tons of feed barley and no wheat following an initial tender for 200,000 tons of feed barley and 90,000 tons of feed wheat. Weekly U.S. wheat sales are estimated at 400,000 to 700,000 tons.

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