Soybeans lead on weather, outside markets

Market News

Soybeans lead on weather, outside markets

Soybeans were higher on commercial and technical buying. Contracts established new highs early in the session on the strength in the broader market and forecasts for dry weather in parts of South America. Commodity firm Refinitiv has lowered its estimate for Argentina to 48.9 million tons because of lower than expected rainfall totals in some areas. Weekly export numbers were bullish for beans and products. China was the big weekly buyer for beans, followed by Egypt, while the Philippines led the way on meal and Mexico topped the list for oil. September saw record month for U.S. exports to China, with a lot of push from soybeans. Soybean meal and oil were higher on the broader market and demand expectations. Bean oil picked up additional support from higher palm oil and India’s purchase of 33,000 tons of 2020/21 U.S. bean oil.

Corn was higher on commercial and technical buying. Corn was also monitoring the broader market, including the lower dollar, and weather in Argentina and Brazil. Stateside, conditions look good for harvest activity in most areas. Weekly export sales were strong, over 100 million bushels, including big buys from Mexico and unknown, and the U.S. has a big price advantage over competing exporters like Ukraine and Brazil. Ethanol futures were higher. China purchased 106,000 tons of 2020/21 U.S. sorghum.

The wheat complex was higher on commercial and technical buying. The big factors were the dollar and dry conditions in the Black Sea region and southern U.S. Plains, potentially limiting planting and stressing the crops ahead of dormancy. APK-Inform says 92% of Ukraine’s winter wheat crop is planted, with crops generally in good and satisfactory shape. The USDA’s next set of supply and demand estimates, including global production projections, is out on the 10^th. U.S. export sales were down on the week, but larger than average. The leading buyer was unknown destinations. DTN says Japan bought 91,612 tons of food wheat from the U.S., Australia, and Canada, and Egypt picked up 300,000 tons of wheat from Russia, while Saudi Arabia is tendering for 600,000 tons of wheat.