Market News

Soybeans hit new multi-month lows

Soybeans hit new four month lows on commercial and technical selling. China bought nearly 187,000 tons of new crop U.S. beans, the third day in a row with a new sale. The U.S. Soybean Export Council says China on Tuesday signed papers to buy 4 million tons of soybeans. The new marketing year for soybeans, and corn, starts Thursday. The USDA’s projecting record demand, along with record U.S. production. Soybean meal and oil were lower on spillover from beans.

Corn was narrowly mixed with September and December down modestly and deferred months up fractionally. U.S. crop weather generally looks favorable and new private estimates have had large yield estimates in many key growing areas. Mexico purchased 275,000 tons of new crop U.S. corn. Ethanol futures were lower.

The wheat complex was mixed with Chicago and Minneapolis down and Kansas City mostly firm. The fundamentals remain bearish, especially on the supply side, but wheat is oversold. Unknown destinations bought 138,000 tons of 2016/17 U.S. hard red winter wheat, supporting nearby Kansas City contracts. After lowering the ergot threshold for wheat imports, Egypt canceled a tender for wheat because of a lack of response.