Market News

Fundamentals provide support for soybeans

Soybeans were higher on commercial and speculative buying. The near term supply remains tight and demand continues to look strong. China’s first quarter GDP growth was a little better than expected, up 7.4% from this time last year. Still, that was the slowest growth rate in the last year and a half and the slowest quarter to quarter growth in two years, according to AgriVisor. Soybean meal and oil were higher, following beans. 85% of Brazil’s bean crop is harvested and with dry weather, Argentina should make a good advance over the next few days. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Old crop beans are placed at -200,000 to 100,000 tons, with new crop at 150,000 to 350,000, old crop bean meal is seen at 120,000 to 250,000 tons, with new crop at 25,000 to 150,000, and old crop bean oil is pegged at 0 to 10,000 tons, with new crop at 0 to 50,000.

Corn was lower on fund and technical selling. There was no real fresh news, so traders took profits while waiting for some new fundamental influence. There are planting delays, but it’s still a little early to get too concerned and longer term outlooks are conducive to planting. In any event, the trade expects a big corn crop again this year and the current supply is ample. Ethanol futures were lower. Weekly old crop U.S. corn sales are estimated at 625,000 to 925,000 tons, with new crop at 40,000 to 150,000.

The wheat complex was lower on profit taking and speculative selling. There’s a chance for rain in the Southern Plains in the longer term forecasts. That being said, the region needs a lot more than a chance to break the drought. The complex is also keeping an eye on political tension in the Black Sea area. DTN reports Jordan bought 150,000 tons of optional origin wheat, “believed to be sourced from the Black Sea”. Old crop U.S. wheat sales are projected at 75,000 to 400,000 tons, with new crop at 175,000 to 450,000 tons.

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