Soybeans Extend Winning Streak
Mar 19, 2014
Soybeans continued to move higher overnight with front-month May futures gaining 16 cents a bushel. Wheat and corn were down slightly with 3 and 2 cent losses.
U.S. soybeans rose for a third consecutive session as strong demand for domestic crushing and exports keeps the old-crop situation tight. Processors in Nebraska and Missouri were up about a nickel on Tuesday as farmer sales have dwindled. CIF soybean basis at the Gulf was higher on Tuesday as exporters need nearby supplies. Bids now through mid-April were +85K, up 5-11 cents. LH April is up 6 cents at +80K.
In wheat, Egypt’s GASC bought 175,000 MT of wheat from combined sources of Russia, US and Romania. In the Ukraine, tensions are rising on the Crimea Peninsula as a Ukrainian servicemen was killed in a military conflict. Russia is now claiming control of the region with world opposition running high on the takeover. So far grain trade has not been disrupted but the geopolitical risks will likely continue to keep corn and wheat prices supported on the potential threat to a primary export market.
For corn, Taiwan's MFIG corn purchasing group has rejected all offers and made no purchase in a tender to buy 60,000 MT of corn which closed on Tuesday. Prices were regarded as too high. Chinese feed mills have recently booked two more cargoes of corn, equivalent to about 110,000 MT, from Ukraine under a loan-for-grains deal signed in 2012, a Chinese buyer said on Wednesday. The fresh deal were in additional to 163,550 MT which have already arrived in China since late 2013, according to China National Complete Engineering Corp (CCEC), which signed the deal with Ukraine firms in 2012.