Demand supports soybeans
Soybeans were higher on commercial and fund buying, shrugging off the extremely bearish activity in the outside markets. The fundamentals remain strong with a tight nearby supply and solid export and domestic demand. The trade’s talking about more buying interest from China, in addition to potential shipping delays out of South America. Soybean meal was up with oil down on product spread adjustments.
Corn was higher on technical buying, along with spillover from beans and wheat. There was no real fresh news for corn, especially from the export side of the market, but the nearby supply does remain very tight. Corn’s watching weather in the Western Cornbelt and Argentina while waiting for USDA numbers out next month. The supply and demand estimates are out March 8 and prospective planting projections will be released on the 28th. Ethanol futures were lower.
The wheat complex was higher on short covering and technical buying. There’s snow and rain across some of the drier parts of the hard red winter areas in the Southern Plains. Still, it looks like that precipitation may be largely priced in at this point and totals are uncertain. On top of that, Egypt bought 60,000 tons of U.S. soft red winter and Allendale Inc. reports that over the past few days, China has purchased a significant amount of U.S. wheat, along with wheat from Australia and Canada. Dow Jones Newswires adds that export demand supported soft red winter cash basis levels Wednesday. European wheat was modestly lower on the early U.S. losses. According to customs data from the United Kingdom, wheat exports for December were 35,130 tons, an 89% year to year drop, with imports at 305,584 tons.
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