Soybeans were higher with most months up sharply on commercial and speculative buying; gains in July were limited by outside market bearishness. The near term fundamentals remain solid and there are continued concerns about weather. According to the USDA, 95% of soybeans have emerged, compared to 77% last year and 81% for the five year average, with 5% blooming, compared to 2% both last year and on average, while 56% of the crop is rated good to excellent, down 4% on the week. Soybean meal and oil were higher, following beans.
Corn was sharply higher on fund and commercial buying. Corn’s looking at a tight nearby supply and good demand, along with concerns over crop development conditions in some key growing areas. USDA reports 5% of corn is silking as of Sunday, compared to 2% both a year ago and on average, with 63% of the crop called good to excellent, down 3% from a week ago. Ethanol futures were higher.
The wheat complex was higher on short covering and spillover from corn. World weather concerns are also a supportive factor, especially for winter wheat, and spring wheat has a relatively good fundamental outlook. For the winter wheat crop 94% has headed, compared to 88% last year and 91% on average, while 48% is harvested, compared to 25% a year ago and 16% on average, with 54% in good to excellent condition, up 1% from last week, and for spring wheat, 33% has headed, compared to 1% last year and 7% on average, and 76% is called good to excellent, also up 1%. European wheat was higher on weather concerns for the Black Sea region and northern China. Rabobank projects 2012/13 European wheat production at 132.5 million tons, including durum at 8 million. Iraq bought 250,000 tons of wheat (100,000 tons each from Australia and Russia, along with 50,000 tons from Canada) and DTN reports South Korea picked up 23,500 tons of U.S. wheat.