Corn, soybeans mixed, wheat higher on export sale
Soybeans closed mixed after trading lower for most of the day Wednesday, finding a market correction following a nearly 10-day streak of closing higher, which ended Tuesday. January beans closed two and three quarters cents lower at $13.56 and the deferred May contract closed two and a quarter cents higher at $13.77. Soybean meal demand seems to be limiting some of the bearish action but, ultimately, the January contract closed 50 cents lower at $415.40. A strong soybean basis is creating strong soybean meal demand, but that strength could be limited on extended feed stock demand. Soybean oil bounced higher, up 15 points at $56.70. Export sales are down for both corn and beans with soy exports down nearly 25 percent compared to this time last year. Meanwhile, Brazil is projected to have a sharp increase in soy exports. South American weather remains a key focus with continued drought conditions in most parts of Argentina and Brazil, rain in the extended forecast could reverse the bullish weather pressure in the market.
Corn was mixed watching dry South American weather. March corn closed up three quarters at $6.05, the May contract up a quarter at $6.06, and the deferred July contract down a quarter at $6.05. Continued drought conditions in most parts of Argentina and Brazil, rain in the extended forecast could reverse the bullish weather pressure in the market for deferred contracts. A lack of new market information and quiet trade front continue to impact the market, weakening futures prices. Argentina’s crop reports are positive for the competitor, but the looming weather concerns are limiting bearish action. U.S. corn inspections are down 15 percent compared to this time a year ago which could push down corn futures as the year closes. Last week, corn hit its highest break-even price since 2012 which might add pressure for profit taking. Increased ethanol production is also adding some bullish action into the market.
Wheat futures traded higher Wednesday on an export sale to Egypt and an oversold bounce after steep losses Tuesday. March Chicago closed four and a quarter cents higher at $7.87, March Kansas City closed higher – up two and three quarters cents at $8.24, and March Minneapolis closed nine and a half cents higher at $10.09. The value of the dollar, although firm, seems to be limiting trade value somewhat, adding some bearish action into the wheat complex. The tight ending stocks especially for hard red winter wheat seems to have been priced into the market. Market. Transportation difficulties from the U.S. Gulf to China is hampering the market. The wheat complex is seeing a downward push on global weather reports being bullish for competitors. Russian and Ukrainian tensions have settled a bit adding bullish pressure into the long-term outlook.