Soybeans continue bullish run on shortened day
Soybeans closed higher coming off strength earlier in the week. Both the January and March contracts were able to set new day ending contract highs for the third day in a row. January gained more than 10 cents on the day to close at $12.69. Dry weather in southern Brazil and Argentina and continued Chinese demand are providing upward pressure. An association representing Brazilian growers has cut its soybean yield forecast by 2 million tonnes to 127 million which was bullish. Basis remains strong with continued support from export and crush numbers.
Corn ended the day higher gaining support from the strength in the soybean market. March corn closed up 3 and 1/4 at $4.50 and the May contract gained 3 and 3/4 to finish at $4.52. Early prices for corn were coming in on the low side but the market saw an upward swing before the early close. Chinese demand doesn’t seem to be slowing down and Brazil’s second corn crop is still a month away from planting. Heavy rainfall across northern Brazil could be a limiting factor moving forward. The weekly ethanol report showed production 19,000 barrels per day higher, and stocks were 219,000 barrels higher. Basis is expected to remain sideways to weaker heading into the holiday weekend. Export sales were weak at 651,000 metric tons.
The wheat complex finished mostly higher on spread trade. The contract was lower, down 3 and 3/4 at $6.26. Kansas City and Minneapolis both gained more than 2 cents on the day. Wheat continues to gain strength from a dollar at the lower end of the index. Current forecasts are also being supportive. Light competition on the export market from Russia hasn’t seemingly cut off strength within the wheat complex and lowered projected Russian ending stocks continued to be bullish for the market.