Soybeans, corn start week out with gains
Soybeans were higher on commercial and speculative buying. There’s been more rain around Argentina and there are the continued concerns about the drier than normal conditions in parts of the U.S. Past that – the fundamental outlook remains solid with a tight supply and strong demand. Soybean meal and oil were up, following beans. Brazil’s Foreign Trade Ministry reports soybean exports during November were down sharply on the month and year at 259,000 tons, while meal and oil sales were also well below October and November 2011 levels.
Corn was higher on speculative buying and spillover from beans. Corn’s also keeping an eye on conditions in Argentina and continued drought in key U.S. growing areas. However, corn would definitely like to see some new export demand in the very near future and traders continue to watch Mississippi River levels decline. Dow Jones Newswires does add cash corn movement increased last week and was heavy Monday. Ethanol futures were higher. According to Brazil’s Foreign Trade Ministry, corn exports for November were 3.91 million tons, up from both October and November 2011. Ukraine’s Ag Ministry reports 96% of the corn crop is harvested at 19.58 million tons.
The wheat complex was lower on technical selling and a lack of follow through buying. There’s some rain in the forecast for the U.S. Plains in the next few days but it should only be scattered and light. Egypt bought 400,000 tons of wheat this weekend, 280,000 tons of that U.S. origin, in addition to 60,000 tons each from France and Romania. Dow Jones Newswires called European wheat trade “flat”. Israel is tendering for 35,000 tons of U.S. feed wheat and Bangladesh is in the market for 50,000 tons of wheat from an optional origin. According to Ukraine’s Ag Ministry, 99% of this year’s grain crop is harvested at 45.96 million tons, down 19.5% from this time last year due to drought.
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