Corn, soybeans and wheat all finished the week higher than last week’s close.
Wheat finished the week up more than 60¢ as Russian wheat mania continued to grow. "I just got off the phone with the New York Times," Jim Bower of Bower Trading told me this afternoon. "That’s an indicator of just how excited the markets—and the media are over this." For Bower’s full comments see link to his tape.
Soybeans rose for the eighth consecutive session as the trade focused on Chinese buying. USDA announced the U.S. sold 336,000 metric tons of soybeans to China for delivery after Sept. 1. That puts China’s imports for the crop year ending Sept. 30 close to 50 million metric tons, up 22% from last year’s robust purchases. This raised speculation that exports will eat through U.S. stocks and tighten supplies until the new crop comes out of the field.
"New-crop export sales are 35% above last year—and that’s despite the fact we knew last year that South America didn’t have a big crop. This tells us we are competitive with South America," says Jerry Gulke of the Gulke Group. "About 80% of the volume is China. They know our harvest will be earlier this year, so they are coming to us earlier."
While August beans finished the week up 6.5¢, November beans rose 28.5¢. "Old-crop supplies will be tighter than most expect right now, but not by much," says Chip Flory, editor of Pro Farmer.