Corn, wheat unchanged, beans keep moving up
Friday, 24 April 2009
FE Desk
Corn and wheat were nearly unchanged in overnight markets, while beans were continuing with their strength.
The US Department of Agriculture data have indicated that strong sales are expected this week for corn and beans. Corn sales were better than expected and soybean sales were huge. Sales were more than needed to meet the current expectations.
Monthly soy crush numbers were released Thursday morning. The average guess was 144.2 million bushels and it rose to 144.66 million bushels. This is a more supportive news for the soy market. Meal and oil stocks were lower than expected, therefore, the products should be well supported as well.
The soybean market continues to exceed demand expectations and more stories are being talked about with problems with the South American crop. China continues to buy and they were buying beans at $2 higher than current prices just a year ago.
The weather has a little more moisture in the forecast in the 6-10 days in the western areas, but the eastern (and wettest) areas are supposed to see mostly dry conditions. The market isn't paying much attention to the forecast right now as old crop bean demand, old crop soy prices and the relationship between corn and beans are the major drivers. Right now, beans are viewed as the better crop to plant.
Market watchers expect the grain markets to be led higher by old crop beans. Continued demand strength and concerns over the South American production numbers are more than enough to feed the bean bull for the time being.
Corn and wheat were nearly unchanged in overnight markets, while beans were continuing with their strength.
The US Department of Agriculture data have indicated that strong sales are expected this week for corn and beans. Corn sales were better than expected and soybean sales were huge. Sales were more than needed to meet the current expectations.
Monthly soy crush numbers were released Thursday morning. The average guess was 144.2 million bushels and it rose to 144.66 million bushels. This is a more supportive news for the soy market. Meal and oil stocks were lower than expected, therefore, the products should be well supported as well.
The soybean market continues to exceed demand expectations and more stories are being talked about with problems with the South American crop. China continues to buy and they were buying beans at $2 higher than current prices just a year ago.
The weather has a little more moisture in the forecast in the 6-10 days in the western areas, but the eastern (and wettest) areas are supposed to see mostly dry conditions. The market isn't paying much attention to the forecast right now as old crop bean demand, old crop soy prices and the relationship between corn and beans are the major drivers. Right now, beans are viewed as the better crop to plant.
Market watchers expect the grain markets to be led higher by old crop beans. Continued demand strength and concerns over the South American production numbers are more than enough to feed the bean bull for the time being.