Post

Commercial demand supports grains and oilseeds

Soybeans were higher on technical and commercial buying. The old crop supply remains tight and China bought another 120,000 tons of new crop U.S. beans. The trade does expect a record crop, but that strong demand is limiting the downside for new crop. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Bean oil had additional pressure from palm oil’s drop to new five year lows.

Corn was higher on technical and commercial buying, along with spillover from wheat and beans. Corn’s digesting the past week’s crop tour, while watching weather and getting set for the next set of USDA numbers. Fundamentals are bearish, but recent losses have led to at least some new demand. Ethanol futures were higher. According to China’s National Grain and Oils Information Center, drought in northeast China could lower corn production by 3.5 million tons. Reuters adds China is increasing inspections of U.S. sorghum imports.

The wheat complex was higher on technical and commercial buying. There’s been more harvest delaying rain in the northern Plains and there are the continued concerns about Europe’s crop quality. Still, the global supply remains ample, which may limit wheat’s upside. France’s AgriMer states 97% of that nation’s wheat crop is harvested, but didn’t update quality, and there are reports of Paris importing wheat. Taiwan issued a tender for 99,400 tons of U.S. milling wheat.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!