Market News

Solid demand supports soybeans, corn

Soybeans were higher on commercial and technical buying, posting a positive week to week finish. Mexico bought 190,000 tons of 2017/18 U.S. beans, continuing the recent hot streak of sales. Mexico is the second biggest buyer of U.S. beans, after China, but has only purchased about one tenth of Beijing’s marketing year to date total. The trade is watching near term weather in the Midwest and Plains, which mostly looks non-threatening. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. The trade’s also watching weather in South America, with parts of Argentina too wet and parts of Brazil too dry.

Corn was modestly higher on commercial and technical buying. Corn is also watching the weather, expecting warm, dry conditions over the near term to speed up maturity and allow for good harvest progress some areas. Contracts did finish the week slightly lower. Quarterly grain stocks are out on the 29th and new supply, demand, and production numbers are due October 12th. Ethanol futures were higher. The Buenos Aires Grain Exchange says Argentina’s corn crop is officially harvested, aside from a few areas that have been too wet, but not enough to change the Exchange’s estimate of 39 million tons. South Korea is tendering for 55,000 tons of optional origin corn.

The wheat complex was mixed, with Chicago modestly lower, Kansas City up fractionally, and Minneapolis higher. The supply side of the market is bearish, but there’s at least some new buying interest at these price levels, either providing outright support or limiting losses. Big sections of the southwestern Plains need soil moisture for winter wheat planting. As a whole, the complex was firm to higher on the week. The Buenos Aires Grain Exchange says drier conditions in some areas improved wheat conditions in Argentina and 45% of the crop now has adequate to ideal soil moisture levels. Another 33% remains too wet.