Market News

Short covering, dollar support grains, oilseeds

Soybeans were modestly higher on short covering and technical buying, along with late, lower trade in the dollar. Brazil’s harvest is almost halfway complete with minor rain delays expected over the next few days. Weekly export sales were within pre-report estimates. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Wire service reports say Brazil’s soybean premiums have moved higher because of the real gaining against the dollar.

Corn was modestly higher on short covering and technical buying. Corn’s also watching weather in South America, along with pre-planting conditions in the U.S. Cornbelt. Weekly export sales were decent, topping 46 million bushels. Physical shipments continue to move out a little bit slower than expected. Ethanol futures were higher.

The wheat complex was modestly higher on short covering and technical buying. Also, after early higher trade in the dollar sparked by a European Central Bank decision, the dollar sold off as the day went on, supporting commodities. The fundamentals are bearish, but wheat’s considered to be a good value. Near term forecasts have more dry weather in parts of the U.S. Plains.