Market News

New exports support soybeans, corn

Soybeans were higher on commercial and technical buying. China bought 65,000 tons of old crop U.S. soybeans, along with 66,000 tons of new crop, confirming some recent trade chatter. Crop development weather looks generally non-threatening and the market expects a big crop. The USDA’s next crop production estimate and new supply and demand numbers are out August 12th. Soybean meal was up and bean oil was down on the adjustment of product spreads.

Corn was higher on commercial and technical buying. Corn was due for a bounce, but the crop is in good shape and aside from some dry spots, conditions look good. Unknown destinations purchased a total of 247,912 tons of U.S. corn, with 74,064 for delivery this marketing year and 173,848 for next marketing year. The new marketing year for corn and soybeans starts September 1st. Ethanol futures were lower. For the week ending July 22nd, ethanol production averaged 998,000 barrels per day, down 31,000 from the previous week’s new record. Stocks came out at 20.390 million barrels, 767,000 less than the prior week.

The wheat complex was mixed with Chicago down modestly, Kansas City steady to firm, and Minneapolis near unchanged. The fundamentals are bearish, especially on the supply side, but there’s continued buying interest near the recent lows. Early spring wheat yields from a major tour are below year ago levels. According to wire reports, farmers in Australia are holding back on selling new crop wheat, watching world weather.