Market News

Commercial selling sends soybeans lower

 

Soybeans were lower on fund and commercial selling. The truck strike in Brazil isn’t over, but the blockades are suspended until next week, so beans are moving to port and diesel fuel is moving to farms. Informa raised its soybean production estimate for Argentina by 1 million tons, while lowering the Brazil outlook by the same amount. The trade’s also waiting for next week’s USDA supply and demand update. According to Allendale, Argentine grain farmers will suspend sales for three days starting March 11th, primarily to protest export quotas. Soybean meal and oil followed soybeans lower.

Corn was lower on fund and technical selling, in addition to spillover from wheat and beans. Corn’s also watching South America and waiting for those USDA numbers. Farmer selling remains light and demand continues to be strong, but there is still plenty of corn available. Ethanol futures were higher. Ethanol production for the week ending February 27 was 931,000 barrels per day, down 1.7% on the week, but up 4.1% on the year.

Wheat was lower on fund and commercial selling, along with the higher dollar. After another round of winter weather, wheat growing areas should see a warm up fairly soon. In any event, the fundamentals remain bearish. According to Russia’s Ag Ministry, 2015 grain production could hit 100 million tons thanks to improved crop conditions in some areas.