Mixed finish after the USDA reports
Soybeans were mostly lower following the USDA numbers. USDA says 2012 production was 3.02 billion bushels with a yield of 39.6 bushels per acre, both larger than expected and ending stocks matched expectations. However, production was still down on the year and quarterly stocks had a 17% year to year decline. Soybean meal and oil were lower on the fundamental implications of a larger soybean crop. The National Oilseed Processors Association’s December member crush report is out Monday at 7:30 AM Central. The soybean crush is projected at 161 million bushels, on average, and soybean oil stocks are seen at 2.592 billion pounds. China bought 120,000 tons of 2012/13 U.S. soybeans.
Corn was mixed after the USDA numbers, not seeing complete follow-through at the session highs. Last year’s crop was 10.78 billion bushels with an average yield of 123.4 bushels per acres, above estimates but down sharply on the year. Also, quarterly and ending stocks were below pre-report expectations. Ethanol futures were higher. According to Dow Jones Newswires, Taiwan’s Maize Industry Procurement Association will tender for 60,000 tons of optional origin corn.
The wheat complex was supported by the USDA reports. USDA’s winter planting estimate is above last year but below the average guess, and quarterly and ending stocks were lower than expected. Also, there are the continued concerns about weather across the U.S. Plains. European wheat was modestly lower, reacting to the USDA numbers. Japan purchased 121,188 tons of Australian standard white wheat and Indonesia picked up a cargo of Australian standard white. The Busan branch of the Korea Feed Association bought 55,000 tons of optional origin wheat and the Daehan Flour Mill purchased 39,500 tons of Australian hard and noodle grade wheat.
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