Can Beans Take Back $13?
Feb 04, 2014
Grains found modest support in overnight trade with soybeans within striking distance of the $13 benchmark on a 6 cent advance. Corn was also higher, but only gaining a cent while nearby March wheat posted fractional gains in the night session.
Beans found support on Monday from a drier and hotter outlook in Brazil. On Monday, USDA said private exporters reported sales of 40,000 MT of U.S. soyoil to unknown destinations for 2013/14 delivery. Back months continue to be pressured by looming South American harvest, with strong yield reports from the early harvest in Brazil. Dry weather in most soy areas of Brazil this week should limit harvest delays. Export inspections for soybeans came in at 45 MB, below expectations of 50 to 58 MB going into the report.
For corn, prices continue to inch higher and Monday’s small rally helped motivate some farmers to move cash grain. Farmer selling has been light in the New Year, and stocks in the hands of farmers seem plentiful compared to recent years so it seems that in rallies could be short-lived. Weekly export inspections were 216 MB, lower than projections of 28 to 33 MB by analysts going into the report. Overnight, a South Korean feed group bought 65,000 MT of US corn for June delivery.
In wheat, the market continues to struggle with plentiful world supplies. Weekly export inspections of US wheat were 11.6 MB below forecasts of 16 to 22 MB ahead of the report. Overnight, India offered 200,000 MT of wheat to export as it continues to try to unload 2 MMT of stockpiles in government warehouses. South Korea was a buyer of 65,000 MT of feed wheat from optional origins. Japan's Ministry of Agriculture offered on Tuesday to buy a total of 312,816 MT of food quality wheat from the United States, Canada and Australia in a regular Thursday-closing tender. Japan, the world's sixth-biggest wheat importer, keeps a tight grip on imports of its second most important staple after rice and buys the majority of the grain for milling via tenders typically issued three times a month.