Soybeans higher on possibly more business with China
Soybeans closed stronger on higher-than-expected April exports for China, which DTN says is a possible sign of life that other economies are starting to wake up from coronavirus shutdowns. Export sales show active participation from China. Another plus is that soybeans in July are cheaper at the U.S. Gulf than in Brazil, giving the U.S. an edge for export business later this summer. Progress in getting packing plants running again is important for restoring feed demand.
Corn was higher on positive ethanol news resulting from higher gasoline demand. Some of the strength was because of weather concerns. Possible freezing temperatures in the northern Corn Belt are a risk to young corn plants. There’s also positive foreign demand news. The USDA says China bought 14.6 million bushels of U.S. corn for 2019-20 and another 12.4 million bushels for 2020-21. The USDA says last week’s export sales totaled 30.5 million bushels. Mexico was the top buyer. DTN says the news doesn’t erase all the bearishness for corn, but it does add a little more hope for prices.
Wheat ended higher Thursday. The latest U.S. Drought Monitor shows abnormally dry areas in western Kansas and eastern North Dakota. Drought is intensifying in southeastern Colorado and in Oregon. In the northwestern U.S. Plains, spring wheat planting is off to a slow start because of cold and wet weather. Outside the U.S., risks to wheat crops are minimal. DTN says rain is still in the seven-day forecast for Ukraine and southern Russia.