(Brownfield) – Soybeans were higher on speculative and fund buying, along with the lower dollar. The trade’s watching weather in South America and while export sales were below expectations, shipments were strong. Weather in Argentina and Brazil is expected to see a return to hot and dry conditions over the next few days. Soybean meal and oil were higher on spillover from beans and the fundamental implications of smaller South American crops. The Buenos Aires Grain Exchange sees 2011/12 Argentine soybean production at 46.2 million tons, down 2% on the year, with 96% of the crop planted.
Corn was mixed. Old crop was steady to weak on an increase in farmer selling and profit taking while new crop was up on commercial support. The pit was up for five sessions in a row and was due for at least a small correction. Weekly export sales were at the high end of estimates and shipments were more than what’s needed to meet USDA projections. Ethanol was firm. The Buenos Aires Grain Exchange states corn planting is 95% complete at 22 million tons, with some production lost to the weather, offsetting an increase in planted area.
The wheat complex was higher on short covering, speculative buying, and the lower dollar. Weekly export sales were near the high end of expectations and shipments were just short of what’s needed to meet USDA estimates. Past that – the trade expects Russia’s exports to slow down over the next couple of months and that region could see very cold conditions in the coming weeks with little or no snow in some areas. European wheat was up on the early gains in corn. According to Dow Jones Newswires, the United Kingdom’s Home Grown Cereals Authority lowered its 2011/12 wheat production figure 106,000 tons to 15.26 million but that’s still 3% above a year ago. The HGCA also cut its import projection by 45,000 tons to 900,000 tons, a 10% year to year decrease thanks to improved production.
By John Perkins |January 26, 2012
