Market News

Weather worries support soybeans, corn

Soybeans hit new four month highs on commercial and technical buying, with the most active months closing above $10. Weekend forecasts were generally hot and dry, especially in western parts of the growing region, with drought conditions expanding in the Plains. Weekly export numbers were neutral to bearish, but demand has held up well, especially considering record South American production. Soybean meal was sharply higher and bean oil was weak on the adjustment of product spreads.

Corn was modestly higher on commercial and technical buying. Corn was also watching the weather with eastern parts of the Cornbelt expected to see better rain coverage than western areas. Mexico bought 143,000 tons of U.S. corn, with 132,000 tons for new crop delivery. The remaining 11,000 tons is for delivery this marketing year, which runs through August. Weekly old crop corn exports were a new marketing year low, but it was a good week for shipments. Ethanol futures were higher.

The wheat complex was mostly modestly lower. Minneapolis consolidated with profit taking in the nearby contracts, but remains concerned about weather forecasts for the northern Plains. Chicago and Kansas City were down on harvest pressure and profit taking. Just about a month into the current marketing year, weekly export numbers were neutral, good shipments, poor sales. The USDA’s new supply, demand, and production numbers are out Wednesday at Noon Eastern/11 AM Central.