Market News

Soybeans down on outside market pressure

Soybeans were lower on profit taking and technical selling, along with spillover from the outside markets. The dollar was higher with the Dow and crude oil sharply lower. That said – losses were limited by the solid commercial outlook. In any event, the trade’s watching planting conditions across South America and getting ready for Friday’s USDA ending stocks and production numbers. Soybean meal and oil were lower, following beans. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are pegged at 400,000 to 700,000 tons, meal is seen at 75,000 to 200,000 tons, and oil is placed at 5,000 to 20,000 tons.

Corn was higher on technical and commercial buying, in addition to spillover from wheat. The long term outlook remains bullish and the pit’s also watching South American planting weather, especially the slow planting pace in Argentina. According to Dow Jones Newswires, Argentina’s corn grower association Maizar has lowered its production outlook by 1 million to 2 million tons to 26 million to 27 million tons because of rain. Still, that would be above 2010/11’s record crop of 24 million tons. The trade expects USDA to lower the production guess Friday while making at least a slight increase to ending stocks. Weekly U.S. corn sales are estimated at 100,000 to 300,000 tons.

The wheat complex was higher on short covering and commercial buying. The trade’s continuing to watch production shortfalls around the world, including Europe, Australia, and the Black Sea region. Additionally, big portions of the hard red winter area in the Southern Plains remain very dry. European wheat was higher, supported by fundamental and technical buying. Ukraine’s Ag Ministry reports that since the start of the marketing year, exports are a record 9.2 million tons. Lebanon bought 50,000 tons of wheat, 25,000 tons from Ukraine and 25,000 tons from Russia. Weekly U.S. wheat sales are projected at 200,000 to 400,000 tons.

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