Market News

Solid demand supports soybeans, corn

Soybeans were higher on fund and commercial buying. Unknown bought another 140,000 tons of 2014/15 U.S. beans and the weekly numbers were bullish. U.S. soybean sales and shipments are at 79% of USDA’s projection for the marketing year. There were a lot of 2014/15 sales late last marketing year, but that’s still pretty impressive, especially considering the current marketing year isn’t even three months old. Soybean meal and oil were higher, following beans.

Corn was higher on fund and commercial buying. Unknown picked up 101,600 tons of 2014/15 U.S. corn, but while weekly sales were good, it was another slow week for shipments. The trade’s also watching the weather and its impact on the tail end of this year’s harvest. Ethanol futures were higher. Ethanol production for the week ending November 14 averaged 970,000 barrels per day, up 7.3% on the year, and stocks were 17.335 million barrels, down nearly 15% from a year ago.

The wheat complex was higher on fund and commercial buying. It’s still cold and snowy around the Great Lakes, but Southwestern winter wheat areas are seeing more seasonal conditions. Past that – weekly export numbers were bearish. Still, the trade’s watching weather issues in Russia and Australia, and U.S. exports could get propped up by the superior quality. Japan did buy 72,600 tons of U.S. food wheat, along with 28,600 tons from Australia and 22,000 tons from Canada, and Taiwan picked up 82,100 tons of U.S. milling wheat. Saudi Arabia is tendering for 12.5% protein hard wheat.