Market News

Soybeans back above $10

Futures Markets copy

Soybeans were higher on commercial and technical buying, settling at multi-week highs and just under the day’s highs. Demand was the big supportive factor ahead of what should be a bullish weekly sales report Thursday. Those numbers are out at 8:30 AM Eastern/7:30 AM Central. The USDA is expecting record production to go along with that strong demand. Soybean meal was up on solid commercial demand with December closing at a two month high. Soybean oil was weak on the adjustment of product spreads. According to Allendale, a Brazilian soybean exporter signed deals with China last week.

Corn was higher on commercial and technical buying, also closing near the highs of the session. Corn’s also looking at strong demand against probable record domestic production. Near term forecasts have harvest delaying rain in parts of the Midwest. Ethanol futures were higher. The U.S. Energy Information Administration reports ethanol production for the week ending October 21st averaged 991,000 barrels per day, down 7,000 on the week. Stocks of 19.919 million barrels were up 877,000.

The wheat complex was higher on commercial and technical buying. The supply side of the market is very bearish, but wheat’s considered to be a good value at these prices. U.S. winter wheat planting and emergence are both close to average. Egypt bought 240,000 tons of wheat from Romania and 180,000 tons from China. South Korea is tendering for 69,000 tons of U.S. feed wheat. Allendale says China’s government has set the government purchase price of domestic wheat at $9.50 per bushel.

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