Market News

Lower finish for grains and oilseeds

Soybeans were lower on fund selling, profit taking, and a lack of follow through buying after a firm start. Weekly export inspections were good but past that, there was just no real fresh supportive news. The trade’s waiting for any new developments in Europe’s economy. Also, they’re watching growing conditions in South America very closely with generally fair conditions expected in most areas of Argentina and Brazil over the near term. Soybean meal was lower and bean oil was steady to firm as traders adjusted product spreads.

Corn was lower on fund selling, profit taking, and a lack of follow through buying. Weekly export inspections were larger than expected and more than what’s needed to meet USDA projections for the marketing year. Still, export demand has declined quite a bit recently and there was no fresh supportive news for corn. Ethanol futures were mostly lower. Dow Jones Newswires reports Japan has purchased 82,500 tons of Argentine corn and sorghum, citing the cheaper price as Tokyo’s reason for bypassing U.S. supplies. APK-Inform, via Dow Jones, projects Ukraine’s corn 2011/12 corn exports at a record 19 million tons, compared to 12 million in 2010/11 thanks to much improved production.

The wheat complex was lower on profit taking and fund selling. Weekly export inspections were bearish and the overall supply and demand outlook is a negative. Chicago’s looking at feed demand and soft red winter weather, Kansas City is watching Southern Plains conditions, and Minneapolis has an eye out for new export sales. European wheat was lower on the firm Euro. According to Dow Jones Newswires, Saudi Arabia bought 330,000 tons from the U.S., E.U., Argentina, Australia, and Canada at an average of $286.45 per ton, while Vietnam picked up 10,000 tons of Australian feed wheat at $255 per ton, and Egypt is tendering for 55,000 to 60,000 tons and another 60,000 tons from all origins, including the Black Sea. France’s Export Cereales expects French wheat sales to Egypt to decline dramatically during 2011/12 because of increased availability of Black Sea origin wheat.