Market News

Grains and oilseeds see solid bounce

Soybeans were higher on short covering and technical buying. Contracts were oversold and pretty much just saw a bounce after making new lows for the move Tuesday. Still, the new crop fundamentals remain bearish and there was no real fresh supportive news. Soybean meal and oil were higher, following the lead of beans. Allendale reports old crop soybean basis levels are firm due to a lack of farmer selling.

Corn was higher on short covering and technical buying. Crop weather continues to look non-threatening and there was no real fresh supportive news for corn either. USDA’s first survey-based assessment of this year’s crop is out on August 12 and the numbers should be very interesting. Ethanol futures were higher. According to the EIA, ethanol production for the week ending July 18 averaged 959,000 barrels per day, up 16,000 on the week and according to the RFA, the second highest weekly output this year.

The wheat complex was higher on short covering and technical buying. The complex also saw a bounce following the new contract lows set earlier in the week in Chicago. The overall fundamentals are bearish and aside from weather issues in the Southern Plains, domestic development and harvest conditions are good, with the Wheat Quality Council’s tour generally projecting solid spring yields. Internationally, the trade’s keeping an eye on harvest delays in parts of Europe. Egypt bought 235,000 tons of wheat (120,000 tons from Russia, 60,000 tons from Romania, and 55,000 tons from Ukraine).