Market News

Commercial demand supports grains and oilseeds

Soybeans were higher on commercial and technical buying. U.S. ending stocks were unchanged with a higher projected average price for the marketing year. World ending stocks were up a little more than a million tons. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. The USDA raised its soybean oil for biodiesel use estimate to 6.2 billion pounds, following the EPA’s RFS revision. However, that could come down as policy directions from proposed EPA head Oklahoma Attorney General Scott Pruitt become clearer. Unknown destinations bought 132,000 tons of 2016/17 U.S. soybeans.

Corn was higher on commercial and technical buying. U.S. corn ending stocks were also unchanged and the USDA also raised the expected average farm price. World ending stocks were higher with bigger production and export estimates for Brazil. Ethanol futures were higher. The USDA left the corn for ethanol estimate unchanged from November. As with soybean oil for biodiesel, that number is subject to change if the EPA shifts emphasis under the incoming Trump Administration.

The wheat complex was higher on short covering and technical buying. U.S. wheat stocks were unchanged with a higher average price estimate and larger world ending stocks number. The trade continues to be reluctant to sell off too much further and there are concerns about freeze damage in the Plains, along with drought in most U.S. winter wheat growing areas. SovEcon’s new projection for Russia’s wheat crop is 70 million tons. Japan bought 67,000 tons of U.S. food wheat, along with 56,000 tons from Canada.