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Soybeans and corn post modest rally

Futures Markets copy

Soybeans were higher on commercial and technical buying. China bought 120,000 tons of 2016/17 U.S. beans and cumulative new export sales over the past several business days have topped a million tons. Contracts were down early, expecting generally good harvest progress across the region. The latest estimate for soybeans from Descartes Labs is for a yield of 48.7 bushels per acre, down 0.1 from the previous projection and up 1.5% on the year. Soybean meal was up on commercial demand and soybean oil was almost completely unchanged. Soybean planting in Brazil is just getting underway.

Corn was higher on commercial and technical buying, bouncing back after early losses. Most forecasts have generally good harvest conditions in many areas for much of the next few days. The U.S. condition rating was unchanged when many were expecting a decline, but some of the crop has been lost and the actual quantifiable amount may not fully be known for a while. The most recent estimate from Descartes Labs is for a national yield of 170.9 bushels per acre, up 0.1 on the week and 1.5% than a year ago. Ethanol futures were higher. The EIA’s weekly U.S. production numbers are out Wednesday.

The wheat complex was higher on commercial and technical buying. There’s a lot of wheat available, but export demand has been better than expected this marketing year. Even with the bearish global supply, U.S. wheat futures may not be able to fall much further, with several of the more active months closing back above support. The USDA says winter planting and emergence are on schedule in most areas. According to wire reports, crop damage from heavy rainfall in eastern Australia is expected to lower that nation’s production projection.

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