Grains Higher in Overnight Session
Nov 19, 2012
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Grains improved Sunday night with soybeans leading the move higher. January soybean futures at one point eclipsed the psychologically important $14 mark.
On Sunday night, China announced that they will temporarily halt regular state soy sales from this week as they will begin to stockpile beans in an attempt to improve margins for soy plants and spur imports.
The suspension is to stop traders and crushers selling their purchases from regular state sales back to the government as Beijing starts buying soybeans from the market at higher prices, said the China National Grain and Oils Information Center.
Corn was also higher in the overnight session, posting 6 cent gains as Asian buyers are seeking more U.S. cargoes due to a delay in deliveries of more than 1.5 million metric tons from Brazil to East Asia, trade participants said. Both Taiwan and Japan are starting to look sat U.S. purchases as attempts to get corn from Brazil have been delayed and cargoes were taking up to two months to be loaded at ports due to heavy congestion.
Wheat prices were also higher, but failed to keep up with corn and beans over night. Chicago wheat was showing 4 cent gains while Kansas City wheat was up 2 cents a bushel. Traders continue to expect wheat export business to start to hit the U.S., as Black Sea region wheat is expected to dry up. However, recent business from millers in Middle East and North Africa have been going to India where wheat prices are cheapest and export volumes may increase if India’s government releases more from reserves.