Market News

Big drop for soybeans

Soybeans were sharply lower on profit taking, commercial selling, and spillover from the outside markets. The dollar was higher following U.S. jobs numbers with the Dow, gold, and crude oil sharply lower. There was no real fresh news out Friday and the trade is keeping an eye on planting conditions in South America. Some forecasts are showing improved conditions for Argentina and Brazil, while others are less certain. Weekly export numbers were solid but not a factor. Soybean meal and oil were lower, following the lead of beans. Ahead of the November 9 USDA production estimates, FC Stone sees 2012 U.S. soybeans at 2.959 billion bushels with an average yield of 39.1 bushels per acre, while Informa pegs the crop at 2.925 billion bushels with an average yield of 38.6 bushels per acre. In October, USDA estimated soybean production at 2.860 billion bushels with an average yield of 37.8 bushels per acre.

Corn was lower on commercial and technical selling, along with spillover from soybeans and the outside markets. Corn stayed in its recent trading range with no real fresh fundamental news to end the week. End user demand is solid but export demand remains slow with another bearish set of weekly numbers. Ethanol futures were lower. USDA’s next set of supply, demand, and production estimates are out Friday November 9. Ahead of the numbers, FC Stone pegs the crop at 10.881 billion bushels with an average yield of 123.9 bushels per acre and Informa projects corn at 10.738 billion bushels with average yield of 122.4 bushels per acre. Last month, USDA estimated production at 10.705 billion bushels with an average yield of 122 bushels per acre.

The wheat complex was mostly lower on commercial selling and profit taking, in addition to spillover from corn, beans, and the outside markets. Kansas City was the exception, supported by forecasts for more dry weather in the Southern Plains. Given world crop problems, the trade does expect a significant increase in export demand. However, it hasn’t happened recently with another bearish set of weekly numbers. DTN reports millers from Thailand bought 45,000 tons of U.S. wheat but that was considered routine; shipment is scheduled for December. Lebanon is tendering for 50,000 tons of optional origin wheat and India has 275,000 tons of wheat on offer for sale. European wheat was firm on the neutral to bullish supply and demand outlook.