Soybeans were sharply lower on speculative and fund selling, in addition to spillover from the outside markets. The dollar was higher with the Dow, gold, and crude oil lower. There are rain showers over the weekend in Argentina with more later on this week but southern Brazil is expected to stay hot and dry. Also, while the rain in Argentina may help in the short term, the region will need to see a substantial shift in pattern. Soybean meal and oil were lower on spillover from beans and the fundamental implications of Argentina’s crop possibly improving. According to Dow Jones Newswires, Libya’s state grain agency is tendering for 15,000 tons of soybean meal.
Corn was lower on fund selling and profit taking, along spillover from beans and the outside markets. There was no fresh supportive news with weekly export inspections bearish. That expected rainfall in Argentina may help out soybeans but the impact on their corn crop at this point in debatable. Argentina is the second largest exporter of corn behind the United States. Ethanol futures were lower. Rabobank, via Dow Jones Newswires, cautioned against expecting a big U.S. corn crop and projects 2011/12 ending stocks at 608 million tons for a record stocks to usage ratio of 4.7%. USDA’s next supply and demand report is out February 9 and the 2011/12 marketing year for corn ends August 31. Dow Jones adds Libya is tendering for 25,000 tons of corn.
The wheat complex was modestly lower on fund and technical selling, in addition to spillover from corn, beans, and the outsides. The global supply remains large but commercial demand has improved recently. Also, there are some weather concerns for the U.S. and especially Eastern European winter crops which have seen very cold conditions with little or no snow in the Black Sea region. European wheat was flat with little direction, keeping an eye on both the large global supply and weather concerns. According to Dow Jones Newswires, Libya’s state grain buying group is in the market for 25,000 tons of wheat.
Latest: 
