Soybeans up on supply, demand

Soybeans were modestly higher on technical buying and spillover from the outside markets. The nearby supply remains tight, demand continues to look strong, and there are concerns about weather in parts of South America. Still, there wasn’t much fresh news and several contracts are close to key resistance points, limiting gains. Soybean meal was up and bean oil was mostly down on product spread adjustments. Dow Jones Newswires reports the ever tightening supply of soybeans supported cash basis levels on the Illinois River. Agriculture and Agri-Food Canada projects 2013 canola acreage at 21.251 million acres, compared to the 2012 record of 21.531 million, while soybean acres are estimated at 4.794 million acres, compared to 4.152 million last year.

Corn was mixed in consolidation trade. Corn’s also looking at a solid near term fundamental outlook and South American weather concerns, especially possible crop loss in Argentina. Old crop was steady to firm on those factors, but new crop was down on projections for a year to year increase in U.S. planted acreage. In any event, with no real fresh news, contracts basically took the path of least resistance. Ethanol futures were higher. According to Agriculture and Agri-Food Canada, 2013 corn acreage should hit 3.459 million acres, down modestly from the 2012 total of 3.538 million.

The wheat complex was slightly lower on technical selling and a lack of follow through buying. It was also pretty quiet across the wheat complex with no fresh fundamental news. Also, some recent snowfall in parts of the spring wheat growing region pressured Minneapolis, which spilled over into Chicago and Kansas City. The trade’s keeping an eye on winter wheat conditions and the export market. European wheat was up modestly on expectations for increased export demand. Agriculture and Agri-Food Canada raised its 2013 spring wheat acreage estimate to 25.326 million acres, compared to 23.828 million in 2012, with durum at 4.819 million acres, compared to 4.679 million a year ago.

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