Market News

Soybeans supported by vegetable oil strength

Soybeans were higher on commercial and technical buying. Demand’s strong, but the big spark Monday was spillover from higher vegetable oil futures. That started in December palm oil before spreading to the U.S. soy complex, pushing December bean oil to a two year high. The December palm oil contract closed at a new contract high. USDA’s expecting record U.S. production with updated harvest numbers out this afternoon. According to the USDA, 76% of U.S. soybeans are harvested, compared to the five year of 76%. Bean meal was up on the higher trade in beans and oil.

Corn was lower on commercial and technical selling. The trade’s expecting the USDA to report good week to week harvest progress with rain in the forecast for parts of the region later this week. As of Sunday, 61% of corn is harvested, compared to 62% on average. Corn’s also looking at strong demand against expected record production. Weekly export inspections were bullish. Ethanol futures were lower. Argentina’s Ag Ministry raised its corn planted area estimate late last week.

The wheat complex was lower on commercial and technical selling. Export demand is solid, but there’s a lot of wheat available, domestically and globally. Wheat’s watching winter planting and development conditions. The USDA says 79% of U.S. winter wheat is planted, compared to 82% typically this time of year, and 60% has emerged, compared to 58% normally. In the first rating of the season, 59% of the crop is rated good to excellent, 12% more than this time last year. Late Monday, Egypt issued a tender for wheat for early December delivery. According to wire reports, Russia’s wheat export prices have now been up for five weeks in a row on that demand from Cairo.