Market News

Another solid finish for soybeans

Soybeans were higher on fund and commercial buying, along with spillover from the outside markets. The dollar was lower with the Dow and crude oil higher. The supply remains tight and demand is strong, and the trade’s watching weather in South America. According to Dow Jones Newswires, some parts of Argentina remain too wet to plant, adding sections of Brazil are drier than normal. Soybean meal and oil were up, following beans. According to Brazil’s Foreign Trade Ministry, soybean exports during October were 906,900 tons, down on the month and the year, with meal at 1.38 million tons, and bean oil at 110,300 tons; meal sales were above September but below October 2011, while the reverse was true for oil. USDA’s weekly export sales report is out Friday at 7:30 AM Central. Soybeans are pegged at 500,000 to 700,000 tons, meal is seen at 120,000 to 225,000 tons, and oil is placed at 0 to 20,000 tons.

Corn was mixed with profit taking in the nearbys and commercial buying in the deferreds. There was no real fresh news, but the trade’s keeping an eye on damage to what hasn’t been harvested in the Eastern Cornbelt. In any event, end user demand is strong and the trade expects an increase in exports. However, in the interim, there’s definitely strong export competition. Brazil’s Ag Ministry reports monthly corn sales were a record 3.66 million tons during October, the third straight month with a new all-time high, and well above the October 2011 total. Ukraine’s corn exports are also running well ahead of last year’s pace. Ethanol futures were lower. Weekly U.S. corn sales are estimated at 110,000 to 400,000 tons.

The wheat complex was higher on commercial and fund buying, along with spillover from beans and the outside markets. Exports from Russia and Ukraine continue to move out at a faster than average pace, leading to concerns about supply. Ukraine’s Agrarian Confederation reports that since the start of the marketing year July 1, wheat sales are 4.125 million tons, very close to the target of 5 million tons for the entire marketing year. Russia’s Union of Grain Producers reports wheat exports since July 1 are 8.2 million tons, with all grain sales at 10.3 million tons. Moscow expects sales for the current marketing year to be 10 million to 12 million tons. SovEcon projects the wheat crop at 37.5 million tons, compared to their last guess of 38 million. U.S. winter wheat is developing slower than normal and the first crop condition rating of the year was the lowest in more than 20 years. European wheat was firm on weather concerns and good export demand. South Korea bought 24,700 tons of U.S. milling wheat. Weekly U.S. wheat sales are projected at 300,000 to 600,000 tons.