Market News

Demand supports soybeans

Soybeans were higher on fund and commercial buying. Weekly export inspections were bullish and demand remains solid with China and unknown buying U.S. beans, 120,000 tons and 110,500 tons, respectively. Harvest jumped 17% over the past week and is expected to make good progress this week, but farmers are a little nervous this close to November. As of Sunday, USDA says 70% of soybeans are harvested, compared to the five year average of 76%. Soybean meal was sharply higher and bean oil was lower on their respective demand situations.

Corn was higher on fund and commercial buying. It looks like corn may have put in the seasonal low and found some good relative value. Export inspections for corn were also bullish. Corn’s watching the harvest pace, along with the calendar as we get closer to November. USDA reports 96% of corn is mature, compared to 97% on average, and 46% is harvested, compared to 65% on average, with 74% of the crop rated good to excellent, unchanged on the week. Ethanol futures were higher.

The wheat complex was higher on fund and technical buying. Wheat’s continuing to bounce off last month’s lows, also finding good relative value right now. According to USDA, 84% of the winter crop is planted, matching the five year average, and 67% has emerged, compared to 62% on average. In the first rating of the season, 59% of winter wheat is called good to excellent, compared to 61% a year ago. Taiwan is tendering for 41,300 tons of U.S. milling wheat.