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Wheat higher on commercial support

Futures Markets copy

Soybeans were modestly higher on short covering and commercial buying. Crop development conditions in Brazil look good with rain in the near term forecast. Domestic demand is solid, but export demand has slowed down. Soybean meal and oil followed beans modestly higher. Brazilian soybean farmers have reportedly asked Sao Paulo to file a complaint with the World Trade Organization about U.S. subsidies. China’s National Grain and Oils Information Center raised its 2015/16 marketing year soybean import estimate to 80 million tons, citing increased crush demand.

Corn was higher on short covering and technical buying. Contracts did finish lower for the week, pressured by slow export demand and the large available supply. Traders were continuing to square up for the USDA numbers out next Tuesday. Final 2015 production totals, quarterly grain stocks, and ending stocks reports are out at Noon Eastern/11 AM Central. Ethanol futures were higher.

The wheat complex was higher on short covering and commercial buying. The supply and demand fundamentals remain bearish, but wheat’s considered to be a good value. The USDA’s first winter wheat acreage estimate of the season is also out next week. South Korea bought 53,100 tons of wheat from the U.S. and 30,100 tons from Canada. The USDA’s Commodity Credit Corporation bought 95,000 tons of U.S. hard red winter for distribution in Jordan.

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