Grain futures close higher after an up and down day
Soybeans closed higher on spread adjustments. March soybean contracts traded above and below the close on Monday, ending up 2 1/2 cents to set a new contract high of $12.50. The up and down day for soybeans came from mixed weather signals from South America with increased rain northern Brazil, putting downward pressure on the market. South American forecasts will continue to be key with dry weather still being reported for southern Brazil and Argentina. Chinese demand as it rebuilds its hog herd coupled with tightening ending stocks added support for a mostly mixed day. Reports say China is expected to have imported more than 100 million tonnes of soybeans this year which would be a record high.
Corn ended the day higher on fund and technical buying. March corn closed up 3 1/2 cents, a new contract high of $4.43 1/2. Corn is being supported from South American weather and little export competition. South American forecasts show heavy rain coming for northern Brazil but only light showers for southern Brazil and Argentina. Chinese demand continues to be a key factor for corn as, again, China rebuilds its hog herd. Corn prices remain high in China suggesting continued U.S. demand.
Wheat finished higher after being supported by early strength. A rally in the dollar index could be a limiting factor moving forward but it is still at the lower end of its range. Light competition on the export market from Russia hasn’t seemingly cut off strength within the wheat complex and lowered projected Russian ending stocks has been bullish. Chicago and Kansas City wheat saw the strongest support both gaining more than four and 1/2. Minneapolis realized a moderate gain of one and 1/4.