Market News

Strong demand supports soybeans

 

Soybeans were higher on fund and commercial buying. Contracts started lower, but came back in relatively solid fashion. Demand remains solid, with another record week for inspections, a record October NOPA crush at nearly 158 million bushels, and China buying 111,095 tons of 2014/15. U.S. beans. Out of that sale, just over 50,000 tons were initially reported as heading towards unknown destinations. USDA reports 94% of soybeans are harvested, compared to 90% last week and 96% on average. Soybean meal and oil followed beans higher.

Corn was lower on fund and technical selling. Fundamentally, there wasn’t much fresh news to start the week and export inspections were bearish. Corn’s anticipating good harvest progress this week with warmer, drier weather expected around the region. According to USDA, 89% of corn is harvested, compared to 80% last week and 88% on average. Ethanol futures were higher.

The wheat complex was lower on fund and technical selling. Fundamentals remain bearish, due to slow export demand and the large available world supply. Weekly export inspections were bearish on wheat. USDA states 95% of winter wheat has been planted, compared to 97% on average, and 87% has emerged, compared to 84%. As of Sunday, even after the cold snap, 60% of winter wheat is rated good to excellent, unchanged on the week. That said – there is still some potential for damage, even if temperatures head towards more seasonal levels.