Market News

Demand outlook supports soybeans, corn

Soybeans were higher on commercial and technical buying. Unknown destinations bought 140,000 tons of 2016/17 U.S. beans, the second day in a row with a new sale of more than 100,000 tons to unknown. That could be a signal China’s fully back in the market after the recent Lunar New Year celebrations. Many forecasts have heavy rain in parts of Argentina over the near term. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was higher on commercial and technical buying. Corn’s also watching conditions in Argentina and Thursday’s USDA numbers were nominally bullish. Corn remains wary about upcoming export competition from South America. Until then, there’s a pretty decent demand outlook. Ethanol futures were mixed, with nearby contracts mostly firm.

The wheat complex was higher on commercial and technical buying. The lower U.S. and world ending stocks on Thursday were a little bit of a bullish surprise. Near term temperatures in parts of the Plains should be much warmer than normal. If there’s emergence and greening, or a continued lack of adequate snow cover, that could be an issue if there’s another cold snap this winter. South Korea bought 67,000 tons of optional origin feed wheat. The USDA’s attaché in Kazakhstan estimates wheat production at 15 million tons, down 1 million from the prior projection.