Market News

Corn hits new highs

Soybeans were mostly lower on profit taking and technical selling with July 2016 through January 2017 posting modest losses. Contracts consolidated after hitting new highs for the move overnight heading into Thursday’s session. July traded as high as $10.98 prior to pulling back. The weekly export sales and shipments were neutral. Soybean meal closed higher on commercial demand and bean oil was lower on the adjustment of product spreads. Meal hit new eighteen month highs before backing off. According to the International Grains Council, 2016/17 global soybean production is seen at 320 million tons, 1 million more than the last guess. New estimates out of Argentina have soybean losses at 4 million to 8 million tons following widespread flooding.

Corn was higher on commercial and technical buying, hitting new seven month highs and breaking out of its recent range. Weekly export numbers were bullish and Taiwan and unknown destinations both bought U.S. corn. Taiwan bought 130,000 tons, 65,000 each for this marketing year and next marketing year, and unknown picked up 123,000 tons for 2015/16 delivery. Contracts were down early, but rallied with renewed gains in soybean meal. Ethanol futures were mixed. The International Grains Council now has world new crop corn production at 1.003 billion tons, up 500 million from the previous projection.

The wheat complex was higher on commercial and technical buying. The weekly export numbers were bearish and so are the fundamentals, but wheat’s still able to generate buying interest. The trade’s also watching weather in the Plains with rain in Texas and potential damage across the Plains from severe weather. The International Grains Council sees global wheat production in 2016/17 at 722 million tons, compared to 717 million in the prior estimate.  SovEcon estimates 2016 wheat production for Russia at 64 million tons, which would be the largest since the end of the Soviet Union. Grain exports are projected at a record 35 million tons, including 25 million tons of wheat. Argentina’s Rural Society firm expects a 30% increase in wheat acreage citing friendlier trade policies. Japan bought 65,000 tons of U.S. food wheat, along with 30,000 tons each from Australia and Canada.