Market News

Corn leads beans, wheat up

Soybeans were higher on commercial and technical buying, along with spillover from corn. There are continued signs of fresh demand from China and while export inspections weren’t great, they were more than what’s needed to meet USDA projections. Past that – the trade’s watching South American conditions with a mixed near term forecast for some of the key growing areas. Soybean meal was up on spillover from corn and soybeans, while bean oil was mixed, consolidating. Dow Jones Newswires notes the Gulf cash basis for beans is starting the week firm thanks to a slowdown in farmer selling and strong demand.

Corn was higher on commercial and technical buying. The nearby supply remains tight, domestic demand is solid, and the weekly export inspections were bullish. In any event, corn’s watching weather in South America and waiting for the next set of supply and demand numbers February 8. Ethanol futures were higher. According to the Ukraine Grain Association, corn exports between July 1 and January 25 were 7.6 million tons, out of a total of 15.8 million tons, 46% ahead of last marketing year’s pace as the trade tries to get ahead of a potential export ban.

The wheat complex was higher on technical buying and spillover from corn and beans. Weekly export inspections were larger than expected but still have a lot of catching up to do. The trade remains concerned about widespread drought around the U.S. Plains, along with growing world demand and a tighter global supply. European wheat was nearly steady in consolidation trade. The Ukraine Grain Association states that since the start of the marketing year July 1, wheat exports are 5.99 million tons, with the expected ceiling for sales at 6 million tons.