Soybeans up on export sales numbers
November 15, 2019 By John Perkins Filed Under: Closing Futures / Livestock Briefs, Crops Markets, Market News
Soybeans were modestly higher on short covering and technical buying, still ending the week lower. Weekly export numbers were good, with China the leading buyer ahead of unknown destinations, which might turn out to be China when it’s time for delivery. Either way, China continues to buy even as uncertainties about the proposed trade deal abound after another week of mixed signals. Beans are watching U.S. harvest weather, expecting good progress in parts of the Midwest and Plains, along with South American planting and development conditions. Weather is generally favorable in Brazil and has improved in Argentina. The Buenos Aires Grain Exchange says slightly less than 20% of Argentina’s soybean crop is planted. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. The National Oilseed Processors Association says the October member soybean crush was larger than expected and a new monthly record at 175.397 million bushels. Corn was modestly lower on fund and technical selling, cementing a lower weekly finish. Most forecasts have generally dry near-term conditions in most of the Corn Belt, allowing for good harvest activity in many areas. Still, northern portions of the region remain wet and while some states are trucking in propane, supplies are short in many of those areas and dry down costs are high. The USDA’s weekly crop progress and condition update will be out Monday afternoon. Weekly export numbers were neutral to bearish, reflecting the continued competition from South America and Ukraine. The Buenos Aires Grain Exchange says more than 44% of Argentina’s corn crop is planted. Sorghum exports were a marketing year high, led by unknown destinations, which might end up being China. Ethanol futures were steady to higher. The wheat complex was lower on fund and technical selling, with Chicago, Kansas City, and Minneapolis all ending the week in the red. Weekly wheat export numbers were bearish, mostly because of the record projected world supply. 2019/20 sales are ahead of 2018/19 and have been a relative bright spot, but that’s not actually saying a whole lot in the grand, fundamental, scheme of things. U.S. wheat remains higher priced than most major competitors. The USDA’s next set of supply, demand, and production numbers is out December 10th. The Buenos Aires Grain Exchange says 13% of Argentina’s wheat crop is harvested, projecting the crop at 18.5 million tons, while the Rosario Grain Exchange has production at 19 million tons. DTN says Taiwan bought 97,750 tons of U.S. milling wheat, while Egypt purchased 465,000 tons of wheat from Russia and Ukraine. APK-Inform says Ukraine’s wheat exports are 12.6 million tons, nearly double the year ago total.
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