Market News

New contract lows in corn, soybeans, wheat

Soybeans were lower on fund and commercial selling, hitting new contract lows. The big bearish factor for beans continues to be the expected record crop. Demand’s strong, China bought 1.236 million tons of 2014/15 U.S. beans, but that was likely part of the deal signed earlier in the week. Soybean meal and oil followed beans lower.

Corn was lower on fund and commercial selling, making another round of new contract lows. As with beans, the overriding negative factor for corn is this year’s expected record crop. Mexico did pick up 375,936 tons of 2014/15 U.S. corn, but weather looks good and fundamentals remain bearish. Ethanol futures were lower.

The wheat complex was lower on fund and commercial selling. For wheat, the big bearish factor is the large available world supply, pushing Chicago to new contract lows. Rainfall is delaying winter wheat planting in the Southern Plains, but it’s also recharging soil moisture, which is arguably a bigger factor. Tunisia bought 75,000 tons of optional origin milling wheat and Algeria picked up 605,000 tons of milling wheat, with at least part of that French origin.