Market News
Soybeans, corn, spring turn a corner to end mostly higher
Soybeans closed fully higher Wednesday. Development weather is good, taking a more bearish turn, with a forecast saying rain is coming Thursday. A drop off in Chinese demand is bearish, however DTN reported rumors of the Chinese buying U.S. new crop soybeans for October. They also reported that funds bought soybeans while selling both corn and wheat. China’s hog herd grew almost 4 percent from April to May, which should boost demand for soybean meal. U.S. soybeans are priced at a discount to Brazil’s.
Corn ended the Wednesday trading session mostly higher after a lower open. The market came back although rain is mentioned in the forecast covering some of the Corn Belt. DTN says crop conditions seem to be non-threatening for the rest of the month. Ethanol production is up 4,000 barrels a day but was expected to be even higher. Ethanol stocks are down, and gasoline demand is expected to increase.
Wheat ended Wednesday lower in Chicago and Kansas City on harvest pressure. A note from Kansas Wheat says the crop is yielding well so far and test weights are “great,” although protein is a little lower this year. Spring wheat futures at the Minneapolis Grain Exchange finished fully higher. There are some potential problems because of hot weather coming to the spring wheat growing areas of Russia.
