Market News

Solid bounce for grains and oilseeds

Soybeans were higher on technical and commercial buying. Fundamentals remain bullish, especially for old crop, and beans were due for a bounce after the recent losses. Cash soybean bids were firm thanks to slow farmer selling as many concentrate on planting. Soybean meal and oil were up with meal outgaining oil thanks to comparatively better demand.

Corn was higher on commercial and technical buying. The near term fundamental outlook is solid and the longer term outlook is moving towards neutral on expectations for continued strong demand. Ahead of the open, South Korea picked up 56,000 tons of U.S. corn for delivery next marketing year. Ethanol futures were higher.

The wheat complex was higher on short covering and technical buying. Kansas City is watching the hot, dry conditions in the Southern Plains and Chicago’s concerned it could spread into the soft red winter growing areas. Additionally, the trade’s keeping an eye on dry weather in key portions of Russia’s wheat belt along with weather issues in Australia, China, and Europe. European wheat was up sharply, tracking Chicago. The United Kingdom’s Customs Service reports March wheat exports were 124,916 tons, up 14% from March 2011. South Korea bought 55,000 tons of optional origin feed wheat and Japan’s tendering for 158,783 tons of milling wheat (37,391 tons U.S. western white, 35,605 tons U.S. hard red winter, 33,029 tons U.S. dark northern spring, 32,170 tons Australian standard white, and 20,588 tons Canadian western red spring).