Market News

Solid finish for grains and oilseeds

Soybeans are higher on technical buying and short covering, in addition to the sharply higher crude oil. The trade’s watching dry conditions in key South American growing areas with only scattered rainfall in the forecast over the near term. Also, outside markets were much more stable and Chinese soybean demand is expected to be good with the Beijing’s Ministry of commerce projecting imports at 5.39 million tons. Soybean meal was higher with oil lower on the unwinding of product spreads. The National Oilseed Processors Association’s November crush report is out Wednesday at 7:30 AM Central. On average, analysts see the soybean crush at 140.9 million bushels, well below the November 2010 total of 148.9 million bushels on slow demand for soybean meal for feed.

Corn was higher on technical buying along with spillover from beans and crude oil. Corn’s also watching South American weather and around 20% of Ohio’s corn crop is still yet to be harvested. However, gains were limited by slow export demand with U.S. corn at a premium to competing exporters. Ethanol futures were mostly firm. According to Dow Jones Newswires, European farm lobbying firm Copa-Cogeca projects 2011/12 E.U. corn production at 64.78 million tons, noting some quality concerns.

The wheat complex was higher on technical buying and short covering. Contracts were due for a bounce after the recent losses and many months found support at key technical levels. However, there was no fresh supportive news and the overall fundamentals remain bearish, especially on the global supply side of the ledger. European wheat was higher on the lower Euro and a lack of fresh selling interest. According to Ukraine’s Ag Ministry, 77.5% of the winter planted grains have emerged, behind average due to poor weather, with 34% of crops said to be in weak condition. Egypt bought 180,000 tons of wheat (60,000 tons each from Argentina, France, and Russia) and Yemen picked up 110,000 tons of wheat (55,000 tons each from Argentina and Russia) while Japan is tendering for 67,357 tons of wheat (36,580 tons U.S. dark northern spring and 30,777 tons Canadian western red spring). European lobbyists Copa-Cogeca, via Dow Jones Newswires, estimate 2011/12 European soft wheat production at 127.98 million tons, noting potential weather related quality issues.

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