Market News

Big losses for grains and oilseeds

Soybeans were sharply lower on follow-through fund and technical selling. There was no fresh news due to the observance of Veteran’s Day and there was also no new commercial interest to start out the week. The trade’s watching South American planting and development conditions, which look generally favorable. Soybean meal and oil were lower following the lead of beans. Losses in oil were limited by product spread adjustments. China’s National Grain and Oils Information Center reports October soybean imports were 4.03 million tons, down 19% on the month but up 6% on the year and larger than originally expected. The Center adds soybean imports could hit a record 57 million tons, compared to 52.6 million in 2011. China’s General Administration of Customs states edible oil purchases during October were 900,000 tons, an increase of 5% from September and a jump of 76% from October 2011.

Corn was sharply lower on fund and technical selling, along with spillover from beans. Corn was also looking at a lack of fresh news due to the holiday and those South American crop conditions are bearish for corn as well. Additionally, export demand remains much slower than expected. Dow Jones Newswires adds the cash corn basis has been “highly variable” with aflatoxin an issue in some areas. Crop progress numbers are delayed until Tuesday afternoon and harvest should be pretty much wrapped up at this point anyway. Ethanol futures were lower. Ukraine’s Ag Ministry states corn exports from July 1 to November 9 are 3.1 million tons.

The wheat complex was sharply lower on technical and fund selling, in addition to spillover from beans. There was no fresh supportive news for wheat either and even with a possible ban, Ukraine’s exports are moving out at a record pace. According to Dow Jones Newswires, wheat exports from the start of the marketing year July 1 to November 9 are 4.57 million tons, 3.74 million of that milling wheat, with the total for all grains at 9.42 million tons. In any event, overall export demand for U.S. wheat hasn’t seen the anticipated increase. The trade’s watching global crop conditions along with the mixed forecast for the dry Southern U.S. Plains. Eastern sections of Kansas, Oklahoma, and Texas have received rain recently, but on the whole, the entire region remains much drier than normal. European wheat was lower on the losses in Chicago and Friday’s USDA numbers. DTN reports Bahrain bought 30,000 tons of optional origin wheat and Taiwan is tendering for 68,200 tons of U.S. wheat.