Weather concerns support beans, corn

Soybeans hit new six week highs on speculative and commercial buying, along with spillover from the lower dollar and higher soybean meal. The trade’s watching crop development weather around South America and looking at a very strong fundamental picture. Additionally, China bought 175,000 tons of 2013/14 U.S. soybeans. Soybean meal was higher on a strong demand outlook and bean oil was up following beans and meal. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are placed at 600,000 to 900,000 tons, meal is seen at 150,000 to 225,000 tons, and oil is pegged at 10,000 to 30,000 tons.

Corn was higher on commercial and speculative buying, along with spillover from bean meal, beans, and the dollar. Corn’s also watching weather in South America with some possibility of crop loss in Argentina. Past that – the trade’s keeping an eye on exports ahead of the next supply and demand report February 8. Ethanol futures were higher. Dow Jones Newswires reports the tight supply and slow farmer selling is supported the U.S. cash basis. Weekly U.S. corn sales are estimated at 200,000 to 400,000 tons.

The wheat complex was higher on technical buying and short covering, in addition to the lower dollar index. There’s a generally tight world supply and increasing export demand from Asia but a lot of that is being supplied by other sellers. South Korea bought 55,000 tons of optional origin feed wheat and, according to Dow Jones Newswires, it’ll likely end up being from India or South America, while Syria picked up 100,000 tons of optional origin milling wheat. At this point, the complex is largely watching weather across the U.S. Plains. European wheat was higher on supply concerns. Japan canceled a sell-buy-sell tender for 120,000 tons of feed wheat and feed barley, citing a lack of interest. Weekly U.S. wheat sales are projected at 300,000 to 550,000 tons.

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