Another down day for wheat, corn
Soybeans were mostly lower on old crop/new crop spread trade, along with spillover from corn and wheat. There was also some commercial pressure in deferreds on expectations for a record soybean crop out of Brazil. Additionally, Argentina’s crop is reportedly in good shape despite the planting delays and there was no real fresh fundamental news. Soybean meal was up and bean oil was down on the adjustment of product spreads and the differing demand outlooks. A pair of South Korean firms bought 110,000 tons of soybeans from Brazil. USDA’s weekly export sales report is out Thursday at 7:30 AM Central. Soybeans are placed at 550,000 to 900,000 tons, meal is seen at 200,000 to 350,000 tons, and oil is pegged at 5,000 to 25,000 tons.
Corn was lower on profit taking and technical selling, in addition to spillover from wheat. There was also no real fresh news for corn and the pit’s generally in a sideways trend right now. Past that – the trade’s getting ready for the next set of USDA numbers out January 11. Dow Jones Newswires reports the slow export demand sent the Gulf cash corn basis lower, noting export inspections are half of what they were this time last year. Ethanol futures were lower. South Korea bought 238,000 tons of corn, mostly U.S. or South African origin, but one cargo will be solely South American. Ukraine’s Ag Ministry reports 98% of the corn crop is harvested at 20.06 million tons and year to date corn sales are 5.2 million tons. According to Agrimer, 2012/13 French corn production was 15.225 million tons, compared to 15.595 million a year ago, with E.U. exports at 6.150 million tons and non-E.U. sales at 400,000 tons. Weekly U.S. corn sales are estimated at 150,000 to 400,000 tons.
The wheat complex was lower on technical and commercial selling. There was no fresh news for wheat either but the lower dollar and recent decline in prices could mean new export demand in the near future. In any event, the complex continues to watch drought around key hard red winter growing areas with no real relief in sight. European wheat was lower, following the U.S. lead. Ukraine’s Ag Ministry states grain harvest is just over 99% complete at 46.43 million tons, 19.82% behind last year’s total, adding wheat exports since July 1 are 5.65 million tons, 4.8 million of that milling wheat. According to France’s Agrimer, 2012/13 soft wheat production was 35.813 million tons, compared to 33.977 million in 2011/12, with exports to E.U. nations seen at 10 million tons and non-E.U. sales at 7.285 million tons. South Korea’s Nonghyup Feed Inc. canceled a tender for 70,000 tons of feed wheat due to high prices, while Korea Flour Mills and Samyang Corp. are in the market for 24,000 tons of U.S. wheat (9,000 tons 11.5% protein hard red winter, 7,500 tons 9.5% protein soft white, 6,200 tons 14.0% protein northern spring, and 1,300 tons 8.5% protein soft white). In sell-buy-sell activity, Japan bought 21,530 tons of feed wheat and 31,030 tons of feed barley, and is tendering for another 120,000 tons of feed wheat and 200,000 tons of feed barley. Weekly U.S. wheat sales are projected at 300,000 to 600,000 tons.
Your email address will not be published.
Notify me of new posts by email.
Subscribe for our newsletter today and recieve relevant news straight to your inbox!