Market News

Soybeans, corn down, expecting rain in Argentina

Soybeans were lower on commercial and technical selling. Contracts hit multi-week highs earlier this week and export demand continues to be slow. Near term forecasts have more rain in Brazil and precipitation is expected in dry parts of Argentina this weekend. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. The USDA’s attaché in Brazil estimates production at a record 98 million tons, and also expects record exports. ADM says Argentina’s farmers are holding onto soybeans, contrary to expectations for increased exports after the new administration abolished the export tariff.

Corn was lower on commercial and technical selling. Contracts are consolidating and will probably stay in the recent range until next week’s USDA supply and demand numbers. U.S. Gulf prices are below some Brazilian prices, which could spark new export demand. Ethanol futures were steady to lower. For the week ending January 29th, the EIA reports ethanol production averaged 959,000 barrels per day, down 2,000 from the previous week.

The wheat complex was higher on commercial and technical buying. The fundamentals remain bearish, but wheat is considered to be a good value. Forecasts have more precipitation in wheat growing areas of the Pacific Northwest, along with a warmer, drier trend in the Eastern Midwest. Taiwan 41,300 tons of U.S. milling wheat, while South Korea purchased 65,000 tons of feed wheat from Argentina. Egypt canceled a tender, citing a lack of offers.