Beans Gain in Overnight
Dec 18, 2013
Beans added to the Wednesday’s gains overnight, improving two cents a bushel, while wheat continued to slump giving up 2 cents in the night trade. Corn traded in a narrow range with a fractional move lower towards the end of night trading.
Wheat continues to be on a downhill slide as ample world stocks continue to put pressure on global prices. The USDA pegged world wheat ending stocks at 182.8 MMT, a two-year high. On Tuesday, Egypt bought 120,000 MT of Romanian and Russian wheat for shipment Jan. 21-31.
For soybeans, the market continues to struggle with rampant near-term demand and expectations of large South American production. Satisfactory crop weather continues in South America with the few dry areas likely to receive showers soon. Dry areas in Argentina were in small crop-growing regions and that corn and soybeans are not mature enough at this time to be harmed by heat or drought. Overall satisfactory crop weather continues in Brazil. Barge rates have come under pressure in recent days which have helped give a modest lift in soybean basis along the river, and looking over a longer term, up 30 cents in the past month.
In the corn market, bullish fundamental news has been in short supply of late. Continued concerns about the ramifications of Chinese GMO corn cancellations and the long-term implications of EPA’s proposed rule to the ethanol mandate. China has rejected more than 10 corn cargoes from the United States since mid-November, after tests showed an unapproved gene-modified strain, an influential agricultural consultancy said overnight. That figure, equivalent to about 600,000 MT, was six cargoes more than the number confirmed by China's quarantine authorities last week, private firm JC Intelligence Co. Ltd (JCI) said in a report seen on Wednesday.