Market News

Soybeans, corn up, but below day’s highs

Soybeans were higher on fund and technical buying, closing well below the session highs. The harvest made a big jump over the past week, but it looks like the market is more focused on demand. In particular, demand for soybeans and soybean meal looks very strong right now, so Tuesday’s close below the session highs for beans and slight losses for meal may have just been an aberration. Soybean meal was down on profit taking after the recent move to seven year highs and bean oil was up on the adjustment of product spreads. Beans are also keeping an eye on South American planting weather.

Corn was up on technical buying and spillover from wheat and beans, also closing beneath the highs of the day. Contracts are back above the September highs and it looks like corn may have already put in the seasonal low. That’s pretty surprising considering harvest isn’t even halfway done. That said – the fact that it’s nearly November may be playing into that psychology. Ethanol futures were higher. Corn’s also watching planting weather in South America. According to Reuters, China is planning to stockpile more corn.

The wheat complex was higher on fund and technical buying. December Chicago has bounced sharply higher from the September lows, even with bearish fundamentals. The winter planting pace remains slower than average nationally, and there are increasing concerns about weather’s impact on production in Russia and Australia. The U.S. bought 25,000 tons of feed wheat from Britain, the first major U.S. import of British wheat in about two years. Taiwan picked up 41,300 tons of U.S. milling wheat.