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Corn, wheat shrug off outside market pressure

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Soybeans were lower on fund and technical selling. The outside markets were bearish, with the Dow closing below 16,000 points and February crude oil setting below $30 per barrel. China was the impetus for the broader market losses, which spilled over into Europe and the U.S. Five day forecasts for Friday Brazil did have rainfall in many key growing areas. Soybean meal and oil followed beans lower. The NOPA’s member crush for December was a little smaller than expected at 157.711 million bushels.

Corn was higher on short covering and commercial buying. Export demand has been slow, but domestic demand is solid. Farmer selling is slow and movement is restricted in some areas by weather. Argentina’s Buenos Aires Grain Exchange raised its corn planted area estimate, which was not completely unexpected after the change in export tariffs. The Exchange also cited good soil conditions. Ethanol futures were higher.

The wheat complex was higher on short covering and commercial buying, along with some lower trade in the dollar. The fundamentals remain bearish with a large world supply and slow export demand for U.S. wheat. Contracts are considered to be a good value around the current price levels. Wire services report two cargoes of feed wheat from Argentina headed to the U.S. southeast. South Korea is tendering for 80,600 tons of wheat from Australia.

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