Soybeans, corn make gains ending the holiday week
Soybeans closed higher on an oversold bounce from Wednesday. Soybeans are being supported by mixed South American weather. Most of central and northern South America are forecast to remain dry while rain is expected to the south. Basis remains strong as logistical freight issues remain while trying to ship exports.
Corn is finished higher after being also oversold Wednesday and following a strong week for exports at nearly 1.7 million metric tons. Weather conditions in South America are giving mixed signals to the market. Parts of South America will go through net drying from now to the middle of next week which will stress crops. The USDA reports more than 302,000 metric tons of corn for delivery to Mexico during the 2020 – 2021 marketing year. Thursday, The International Grains Council cut its forecast for global corn production for this marketing season while doubling its corn import projections for China.
Wheat closed higher. Wheat is being supported by a lower dollar and drought concerns in the Black Sea region as the region’s crops enter dormancy. Weekly export sales were strong at a marketing-year high of 795,700 metric tons. Dry weather in the western plains remains a limiting factor keeping the market from moving higher.