Market News

Outside markets support grains, oilseeds

Soybeans were higher on fund and commercial buying, along with spillover from the outside markets.

The dollar was lower with the Dow, gold, and crude oil higher. The near and long term fundamentals remain bullish with a tight supply and strong demand. Soybean meal and oil were higher, following beans. The Solvent Extractors’ Association of India, via Dow Jones Newswires, reports oilmeal sales during October were 121,919 tons, down sharply on the year, with sales since the start of the marketing year April 1 at 1.7 million tons, a 30% year to year decline.

Corn was higher on commercial and fund buying, in addition to spillover from beans and the outside markets. Corn’s keeping an eye on Argentina’s planting pace with 40% in the ground compared to 60% on average. Past that – the pit’s getting ready for Friday’s supply, demand, and production report. The numbers are due out November 9 at 8:30 AM Eastern/7:30 AM Central. Ethanol futures were higher. Ukraine’s Ag Ministry reports 81% of the corn crop is harvested at 15.7 million tons.

The wheat complex was higher on commercial buying, short covering, and spillover from the outside markets. The winter crop condition rating declined again last week and near term conditions for the Southern Plains continue to look warmer and drier than normal. The complex is also watching dry conditions in key growing areas of Western Australia. European wheat was higher on gains in the Euro and expectations for solid export demand. According to Ukraine’s Ag Ministry, 94% of the total grain area is harvested at 42 million tons, down 16% from last year due to drought. The Ministry adds winter crops are in better than a year ago shape with emergence at 88.5% and 55.9% in good condition. Kazakhstan’s Ag Ministry states harvest is over with total clean weight at 14.718 million tons, slightly above expectations but well below the 2011 total. Offre & Demande Agricole, via Dow Jones Newswires, expects the United Kingdom to import around 2 million tons of wheat during 2012/13 because of the poor condition of this year’s crop. Bangladesh is tendering for 50,000 tons of optional origin wheat.

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