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Demand supports grains, oilseeds

 

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Soybeans were higher on fund and commercial buying. The quarterly stocks number reflected the strong demand and could lead to lower ending stocks in the next supply and demand report. Still, South America’s harvest is going well, U.S. producers are expected to plant record acreage, and the supply fundamentals are bearish. Soybean meal and oil were higher. Allendale reports Brazilian truckers have announced plans to strike again on April 22nd if the government doesn’t raise minimum freight rates.

Corn was higher on fund and commercial buying. Corn was digesting Tuesday’s USDA numbers, which had a year to year acreage reduction and an increase in supply. Traders are also watching the early fieldwork delays in the Eastern Cornbelt. Ethanol futures were higher. Ethanol production for the week ending March 27th averaged 950,000 barrels per day, down 0.1% on the week and up 3.25% on the year. Stocks totaled 20.547 million barrels, 3.6% less than the previous week and 29.4% more than last year at that time.

The wheat complex was higher on fund and commercial buying. There’s at least some light rain in the forecast over the next couple of around dry areas of Oklahoma and Texas. However, most of the Plains need a lot more precipitation and much of the Eastern Midwest is still too wet. The fundamentals are bearish, but continued support is coming from commercial demand for old crop U.S. wheat.

 

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