Soybeans were higher on technical buying and short covering. The fundamentals remain strong with a tight supply and January is holding well above the 200-day moving average. However, the trade does expect a record South American crop and there’s more talk about China canceling recent soybean purchases, but nothing confirmed as of yet. Soybean meal and oil were higher, following the lead of beans. Statistics Canada reports 2013 canola production was 17.960 million tons, up on the year and at the high end of pre-report estimates. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybeans are pegged at 400,000 to 1.6 million tons, meal is seen at 120,000 to 325,000 tons, and oil is placed at 10,000 to 60,000 tons.
Corn was higher on commercial buying and short covering. Mexico bought a total of 165,750 tons of U.S. corn, 132,600 tons for delivery this marketing year, and weather is preventing the tail end of this year’s harvest. Dow Jones Newswires reports China has rejected at least 120,000 tons of U.S. corn recently, citing GMO content. Past that – there’s a large available supply, but at current price levels, traders seem reluctant to sell new crop corn. Ethanol futures were higher. Weekly U.S. corn sales are estimated at 400,000 to 1.050 million tons.
The wheat complex was lower on fund and technical selling, in addition to the higher dollar. Canada’s wheat crop is reported by Stats Canada at 37.530 million tons, up 38% on the year and above all expectations, and there was just no real fresh supportive news for the complex. Wheat’s overall fundamentals continue to look pretty much neutral. Weekly U.S. wheat sales are expected to be between 350,000 and 650,000 tons.