Corn, Soy Futures Steady, Wheat Price Down. (Feb 02, 2012) |
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Soybeans were modestly higher on light speculative and technical buying. Overall, the trade continues to watch weather and possible crop damage in South America. Dow Jones Newswires notes the Buenos Aires Grain Exchange says the rain has helped some but added at least one Argentine private analyst believes 10% of the crop potential has been lost. Outside markets were bearish and weekly export sales were below expectations but shipments remain strong. Soybean meal and oil were up modestly following beans. Taiwan picked up 12,000 tons of U.S. beans.
Corn was up modestly on light speculative and commercial buying. The pit’s watching South American crop conditions with the Buenos Aires Grain Exchange lowering the Argentine estimate to 22 million tons and ahead of the open Japan bought 107,340 tons of 2011/12 U.S. corn. Taiwan bought 23,000 tons of U.S. corn. Still, while export demand has been good, physical shipments are slower than what’s needed to meet USDA projections. Ethanol futures were lower. USDA’s South African agricultural attaché lowered its corn production outlook to 11.5 million tons due to dry weather, while the Mexico City USDA office lowered its outlook to 18.4 million tons, also due to weather problems.
The wheat was lower on profit taking, technical selling, and the higher dollar. There’s a chance for more moderate temperatures in Eastern Europe and there’s precipitation in the forecast for the Southern U.S. Plains. In any event, Chicago was overbought and due for a correction after the recent gains. European wheat was lower on expectations for an improvement in the Eastern European weather pattern. Still, Commodity Weather Group does think some damage has been done in Russia and Ukraine, and possibly even France and Poland. Ahead of the open, Japan bought 94,389 tons of U.S. wheat (38,569 tons dark northern spring, 33,225 tons western white, and 22,595 tons hard red winter) for April shipment. Jordan purchased 150,000 tons of optional origin wheat. |
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