Market News

New exports support corn, soybeans, wheat

Soybeans were higher on fund and technical buying. China bought 1.5 million tons of 2015/16 U.S. beans and the weekly export numbers were solid. Demand remains strong, but crop conditions around South America look good. Soybean meal and oil were higher, following beans. In an early release from USDA, 2015 soybean acreage is expected to 84 million acres. Along with approving imports of a type of GMO corn, China is also approved imports for two types of GMO beans.

Corn was higher on fund and technical buying. Unknown picked up 126,000 tons of 2014/15 U.S. corn and while it was a good week for export sales, shipments remain slow. The trade’s continuing to keep an eye out for new demand, especially from China. Ethanol futures were higher. USDA’s projecting next year’s U.S. corn acreage at 90.9 million acres.

The wheat complex was higher on fund and technical buying. Mexico purchased 111,580 tons of U.S. hard red spring wheat, 89,264 for this marketing year and 22,136 tons for next marketing year. The weekly numbers were neutral, with good sales and slow shipments. Wheat’s continuing to watch the financial and trade situations in Russia. Japan picked up 68,700 tons of U.S. food wheat, along with 34,500 tons from Australia and 27,100 tons from Canada. Japan’s already tendering for 130,400 tons of food wheat from those same suppliers.