Market News

Chinese cancellation sends soybeans lower

 

Soybeans were lower on fund and speculative selling. China canceled on 200,000 tons of previously purchased new crop U.S. beans, confirming some recent market chatter. Near term crop weather forecasts are non-threatening with seasonal temperatures and rainfall for much of the Midwest. Soybean meal and oil were lower on spillover from beans. Friday was the first notice day for August soybean and product contracts.

Corn was lower on fund and speculative selling. Mexico bought more than 108,000 tons of U.S. corn, mostly for delivery next marketing year. Out of the total, 72,136 tons are for 2015/16 delivery and 36,038 tons are for 2016/17 delivery. Corn’s also watching the weather and while the forecasted rainfall isn’t needed in some areas, it’ll be welcome in other areas. Ethanol was mixed.

The wheat complex was mixed, with light commercial interest supporting Kansas City and nearby Chicago contracts. Contracts started the day around five week lows and unknown bought nearly 127,000 tons of U.S. wheat. 67,650 tons were hard red winter, 37,250 tons were white wheat, and 22,000 tons were hard red spring. However, the fundamentals are bearish with a large world supply and slow export demand for U.S. wheat.