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Corn continues bounce, soybeans take profits

Soybeans were modestly lower on profit taking and technical selling. Beans are watching development conditions and harvest activity in South America. Conditions look generally good, aside from minor near term rain delays close to ports in southern Brazil. Safras e Mercado says 94% of Mato Grosso’s crop is harvested. Mato Grosso is Brazil’s top soybean producing state. The trade’s also getting ready for prospective planting and quarterly stocks reports on the 31st. Soybean meal was weak and bean oil was firm, adjusting product spreads.

Corn was modestly higher on commercial and technical buying, continuing the bounce off of the recent eight week lows. Corn’s also watching South America and expecting to hold a competitive edge on exports until Brazil’s second harvest gets underway. U.S. corn’s currently at a discount to Brazilian prices. Forecasts for Brazil are generally favorable with showers in most near term outlooks as the crop heads towards critical phases of development. Ethanol futures were lower.

The wheat complex was fractionally to modestly higher on commercial and technical buying, along with the weak dollar index. The southwestern Plains should mostly stay dry and warm with only light rain in the extended forecasts. The supply side of the market is the big bearish factor and export demand for U.S. wheat is no better than neutral. Japan is tendering for 120,000 tons of optional origin feed wheat and Jordan is in the market for 100,000 tons of optional origin milling wheat.

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