Market News

Soybeans, corn end day weak

Soybeans were slightly lower on fund and technical selling. Tuesday’s USDA numbers were bearish, with a big South American crop and slower U.S. crush demand. Near term forecasts have good conditions in Brazil and more rain this weekend in Argentina. Wire service reports have increased soybean sales in Argentina last month. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was fractionally lower on fund and technical selling. Corn’s digesting those USDA numbers, especially the bigger U.S. ending stocks and South American production. Japan bought 243,000 tons of U.S. corn for delivery next marketing year. Ethanol futures were lower. The EIA reports that for the week ending February 5th, ethanol production averaged 969,000 barrels per day, up 10,000 on the week. Ethanol inventory was a new all-time high at 23 million barrels.

The wheat complex was mixed with Chicago up, Kansas City mostly weak, and Minneapolis lower. The bearish fundamentals were reflected in the USDA numbers, but wheat’s considered to be a good value at these prices. Forecasts for the Southern Plains are dry, particularly in Texas and Oklahoma. Japan bought 54,400 tons of U.S. food wheat, along with 61,800 tons from Australia and 29,800 tons from Canada. Tunisia purchased 75,000 tons of optional origin milling wheat.