Market News

Soybeans, corn supported by demand and weather

Soybeans were higher on commercial and technical buying. Near term demand prospects remain strong, with new supply and demand numbers out Friday at Noon Eastern/11 AM Central. The trade’s expected to watch domestic old crop and South American numbers closely. It’s early in the season, but there are concerns about hot weather in the Plains and Midwest. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was higher on commercial and technical buying. Corn’s also watching the weather with hot, dry weather expected in much of the Cornbelt this weekend. New USDA acreage numbers are out at the end of the month, which could answer some questions, but create some new ones, too. There’s also some sentiment that this move is a delayed reaction to the earlier planting woes. Ethanol futures were higher following the weekly EIA numbers. Last week’s production averaged 999,000 barrels per day, down 21,000 on the week, and stocks dropped 781,000 to 21.982 million barrels. Crude oil was sharply lower on a supply increase.

The wheat complex was mostly higher on commercial and technical buying. The hot, dry weather in the Dakotas is a concern for spring wheat, but there’s at least some chance of rain next week. The nearby Minneapolis July and September contracts were weak, unable to hold above $6. That dry weather should help the winter harvest stay ahead of average. In sell-buy-sell trade, Japan bought 14,010 tons of feed wheat. Taiwan is tendering for 92,400 tons of milling wheat.