Solid bounce for soybeans, corn
Soybeans were higher on fund and commercial buying. Contracts saw a bounce after the recent move to two and a half month lows. USDA’s updated quarterly stocks and acreage numbers are out June 30. Ahead of the report, Informa Economics has raised its acreage guess to 81.8 million acres. In product spread trade, bean meal was lower and bean oil was higher.
Corn was higher on fund and commercial buying. Corn hit more than four month lows recently and commercials used that as a buying opportunity. Past that – the trade continues to watch development weather. Informa has slightly lower its planted acreage projection ahead of USDA’s report at the end of the month. Ethanol futures were higher.
The wheat complex was mixed. Chicago was mostly lower in spread trade. Kansas City was up, supported by commercial demand, and Minneapolis has an eye on wet conditions in parts of the Northern Plains. World growing conditions look pretty good, but parts of Kazakhstan and Russia need rain. According to Reuters, the hard red wheat harvest in the Plains has been slow this week due to rainfall, and yields are low with high protein content. Egypt bought 180,000 tons of milling wheat (120,000 tons from Russia and 60,000 tons from Romania).
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