Market News

Big losses for wheat complex

Soybeans were lower on speculative and technical selling, along with end of the month profit taking. There was no real fresh supportive news outside of more planting delays in Argentina, while comparatively, conditions in Brazil look good. South Korea bought another 55,000 tons bean meal, but it’s from South America, and the International Grains Council raised its world soybean estimate to 267 million tons citing the expected record South American crop and better than anticipated U.S. yields. The Canadian Oilseed Processors Association, via Dow Jones Newswires, reports Canada’s bean crush during the week ending November 28 was a record 26,241 tons. Soybean meal and oil were down on spillover from beans.

Corn was lower on fund and technical selling. Contracts were due for at least some correction and profit taking after the recent strong bounce off of the November lows. Corn’s also watching weather in Argentina, but that’s largely being treated as a known factor at this time. Ethanol futures were lower. China’s National Bureau of Statistics states 2012 corn production was 208.12 million tons, up 15.34 million on the year, with corn production passing rice for the first time. According to Ukraine’s Ag Ministry, 95% of the corn harvest is complete at 19.25 million tons.

The wheat complex was sharply lower on fund and technical selling, in addition to month end profit taking. There was also no fresh news for wheat with the complex keeping an eye on the slow export demand for U.S. supplies. The trade does expect an increase in global demand but it hasn’t happened yet. Chicago had additional pressure from the heavier than expected first notice day deliveries on the December contract. European wheat was lower but losses were limited by the supply worries. China’s Bureau of Statistics reports wheat production for 2012 was up 3.18 million tons on the year at 120.58 million tons. South Korea bought 75,800 tons of wheat from Australia and in sell-buy-sell activity, Japan picked up 30,652 tons of food wheat, 5,050 tons of malting barley, and 790 tons of food barley.