Market News

Soybeans lower on Chinese cancellation

Soybeans were lower on fund and technical selling, taking profits after Monday’s gains. Unknown destinations bought 111,000 tons of U.S. beans, but China canceled on 120,000 tons. The activity was for the 2014/15 marketing year. The trade’s watching weather in South America, with rain headed for some dry areas. Still, parts of eastern Brazil are in need of rainfall with one major waterway closed due to lower river levels. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on fund and technical selling. Corn’s also watching weather in South America and South Africa, and there was no real fresh supportive news. March closed below what had been support, but above the 100-day moving average. The pit is in a downtrend, but losses have been limited by strong domestic demand and a continued lack of farmer selling. Ethanol futures were lower.

The wheat complex was lower on fund and technical selling. There is some commercial interest, but export demand for U.S. wheat remains slow and fundamentals are bearish. There’s some snow and colder conditions in the forecast for the U.S. Plains and eastern Midwest. Argentina’s government projects wheat production at 13.9 million tons. According to DTN, Ukraine’s grain traders and ag ministry have agreed to limited milling wheat exports between January 1 and June 30 to 1.2 million tons. The United Arab Emirates bought 40,000 tons of milling wheat, around 25,000 tons from Australia and the remainder from Canada.