Soybeans bounce back late

Soybeans were steady to firm on late fund and technical buying. The near term supply remains tight and demand continues to look strong, especially from China, even if there is continued talk that they’ll eventually cancel on some purchases. The trade’s keeping close watch on weather around South America. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Informa Economics projects 2014 U.S. soybean acreage at 81.264 million acres, compared to 2013’s total of 76.533 million.

Corn was lower on technical and fund selling. Egypt bought 204,000 tons of old crop U.S. corn, but there’s a lot available right now and the path of least resistance appears to be lower. Corn’s also watching the weather around South America, especially the dry areas of Argentina and southern Brazil. Ethanol futures were lower. Informa Economics estimates 2014 U.S. corn planted area at 93.319 million acres, compared to 2013’s final of 95.365 million.

The wheat complex was lower on fund and technical selling, along with the mostly higher dollar. Japan and Egypt both bought U.S. wheat this week, but that hasn’t sparked much interest since there’s a lot of wheat on the market. Forecasts for Black Sea wheat regions look generally moderate in terms of temperature, but snow cover in parts of Ukraine is lacking, and there’s a chance for extreme cold in the area. Japan is tendering for 49,500 tons of Canadian western red spring wheat.

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