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Soybeans, corn see slight bounce

Soybeans were higher on technical buying. Frost over the weekend wasn’t as bad or as widespread as expected and the trade’s still expecting a record crop. USDA reports 24% of soybeans are dropping leaves, compared to the five year average of 32%, while 72% of the crop is rated good to excellent, unchanged on the week. The trade’s also watching early planting conditions in South America. If anything’s going to help with the tight near term supply, it’ll be the strong demand. China bought another 118,000 tons of U.S. beans for 2014/15 delivery. Soybean meal was mostly weak and bean oil was higher. New FSA acreage numbers are out Tuesday.

Corn was higher on technical buying. Corn’s also watching the weather, with a warmer pattern expected across the region over the next ten days or so. According to USDA, 82% of corn is denting, compared to 85% on average, 27% has reached maturity, compared to 39% on average, and 4% is harvested, compared to 9% on average. 74% of corn is rated good to excellent, unchanged from a week ago. Ethanol futures were higher. Mexico picked up 120,000 tons of U.S. corn for 2015/16 delivery.

The wheat complex was lower on fund and technical selling. The big bearish factor for wheat continues to be the large available world supply. For spring wheat, 74% is harvested, compared to 86% on average, and for winter wheat, 12% is planted, compared to 11% on average. There was some freeze damage over the weekend in the Northern Plains, but, again, the world supply limits some of that impact, and Kansas City is focused on the rainfall recharging soil moisture in the Southern Plains. DTN reports Saudi Arabia bought 610,000 tons of hard wheat from the E.U., North and South America, and Australia, with the seller deciding the origin.

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