Market News

Soybeans mostly higher, corn firm

 

Soybeans were mostly higher on commercial buying. Most contracts saw a bounce, with additional support from a higher close in China’s stock market heading into the U.S. session. The crop is in good shape overall with development close to average. The lightly traded August contract was modestly lower. The trade is watching the weather, which looks benign, but there’s a lot of uncertainty ahead of the August 12th USDA reports, and the FSA’s prevent plant figures. Soybean meal was mostly higher, following beans, and bean oil was weak. Allendale reports Ukraine plans to expand soybean production in attempt to get some of the Chinese demand.

Corn was modestly higher on short covering and commercial buying in pretty thin activity. Corn saw a bounce with contracts near the lowest levels in several weeks. Contracts are expected to stay in a sideways pattern ahead of the August 12th USDA numbers. Near term crop weather forecasts are non-threatening for most of the Midwest. Ethanol futures were mixed. South Korea bought 134,000 tons of optional origin corn and Taiwan picked up 130,000 tons of corn from Brazil.

The wheat complex was lower on fund and speculative selling in light trade volume. Contracts were up early but couldn’t follow through, as the fundamentals remain bearish with a large world supply and slow export demand for U.S. wheat. The winter harvest is close to wrapping up and spring wheat is in good shape. Spring wheat growing parts of the U.S. Pacific Northwest and the Canadian Prairies remain dry, but most world wheat areas are in satisfactory condition.