Market News

Corn hits new seven month highs

Soybeans were higher on commercial and technical buying. Demand continues to be strong, as China bought 110,000 tons of 2016/17 U.S. beans and unknown destinations purchased 100,000 tons of 2016/17 U.S. meal. Contracts were down early on profit taking and the lower meal, before coming back late in the session. Soybean meal was mixed with nearbys down on profit taking. Bean oil was up on oversold signals.

Corn was higher on commercial and technical buying. Corn followed through on Thursday and made another new seven month high. Weekend forecasts have more rain around the Midwest and Plains, and China bought 130,000 tons of 2015/16 U.S. corn. According to wire reports, Chinese corn imports during the first four months of 2016 were more than 30% ahead of 2015. In a state reserve auction, China sold 44% of the offered corn, including a small amount of U.S. corn. Ethanol futures were higher.

The wheat complex was mixed, with Kansas City and Minneapolis down on profit taking and the higher dollar, and Chicago just about unchanged. Wheat’s also watching the weather and the potential damage to crops in the Plains. The fundamentals remain bearish with a large supply and slow export demand. The USDA’s Commodity Credit Corporation bought 51,000 tons of U.S. hard red winter for Ethiopia.