Market News

Corn manages modest gains

 

Soybeans were lower on fund and speculative selling, with November trading below $9 at times. Near term demand continues to be strong, but the trade is expecting a big crop this year. Beans are also keeping an eye on labor issues at key ports in Argentina. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Bean oil had additional support from Argentina’s retroactive hike of April export tariffs on biodiesel.

Corn was modestly higher on short covering. There’s more rain around the Plains, from Texas to Canada, with concerns about flash flooding in some areas. Overall though, development conditions look good and the trade is expecting a big crop. Commercial support also helped out corn contracts. Ethanol futures were higher. Ethanol production averaged 969,000 barrels per day.

The wheat complex was mixed with Chicago and Minneapolis up modestly, and Kansas City steady to weak. For now, wheat’s largely ignoring potential damage to the developing winter crop in the Plains. The trade is also watching dry conditions in portions of Russia. The fundamentals remain bearish, but there is at least some commercial interest. Export demand for U.S. wheat continues to be slow with Egypt buying 240,000 tons from Romania and Russia.