Market News

Commercial demand resurfaces in soybeans

 

Soybeans were higher on fund and commercial buying. China’s third quarter GDP results weren’t great, but they were better than expected and demand remains strong. Harvest is slower than average, but is expected to catch up, in most areas, thanks to a better weather outlook. Soybean meal was higher, also attracting new commercial demand, and bean oil was firm, just following the rest of the soy complex. The trade’s also watching the slow planting progress in South America.

Corn was higher on fund and technical buying. Corn’s also looking at solid demand and a slower than average harvest as farmers in some states are focusing on beans. Past that – fundamentals may be bearish, but prices are at a good relative value. Ethanol futures were higher. Like beans, corn’s also keeping an eye on South America’s planting pace.

The wheat complex was higher on fund and technical buying. Wheat’s in a short term uptrend without any real fundamental news. Winter wheat planting is right around average and emergence, at 56%, is ahead of the normal pace. Egypt has a tender for an unspecified amount of wheat and Japan is in the market for 109,700 tons of food wheat from the U.S. and Australia.