Market News

Continued commercial demand supports soybeans, corn

Soybeans were higher on commercial and technical buying. The USDA tightened the old crop balance sheet and while new crop stocks were up, demand is expected to stay strong. Crop development conditions are generally non-threatening. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. China’s customs agency says June soybean imports were lower than expected at 7.56 million tons, down a little more than 1% on the month and nearly 7% on the year.

Corn was higher on commercial and technical buying. Corn’s also expecting strong new crop demand, especially from the export sector. Corn conditions are good with more rain in the forecast, but there’s a long way to go this growing season. Ethanol futures were mixed. The EIA reports ethanol production for the week ending July 8th averaged 1.004 million barrels per day, up 20,000 on the week, with stocks down about 400,000 barrels at 21.131 million.

The wheat complex was mixed. Chicago was up on commercial and technical buying, following the lead of corn. Kansas City and Minneapolis were steady to lower. The world’s supply is large, but export demand has been better than expected. The winter wheat harvest is ahead of average and the spring crop is in good shape. DTN says Egypt bought 120,000 tons of wheat from Russia and 60,000 tons from Ukraine.