Soybeans were sharply lower on fund liquidation, profit taking, and old crop/new crop spread adjustments. There was no real fresh news, China’s planning to sell another 600,000 tons of beans on their domestic market, and the outside markets were mostly bearish with the Dow and crude oil sharply lower. In any event, traders are watching the planting pace and waiting for new export demand. Soybean meal and oil were lower, following beans.
Corn was higher on commercial and technical buying, in addition to spillover from wheat. There wasn’t much fresh news but the Gulf basis was up sharply due slow farmer selling, the tight nearby supply, and solid demand outlook. With early planting this year, expect an early harvest and increasing cash movement in the coming months. Ethanol futures were higher. The U.S. Grains Council, via Dow Jones Newswires, states Southeast Asian imports of dried distillers’ grains with solubles from January to March were down 11% on the year at 264,105 tons on increased corn availability, higher prices, and lower levels of fat with higher protein content.
The wheat complex was sharply higher on speculative and commercial buying, along with the lower dollar and short covering. The trade’s watching dry conditions in the Southern U.S. Plains, the Black Sea region, and eastern Australia. Also, there are increasing concerns about stressful conditions around the Midwest. European wheat hit new 11-month highs on weather worries. According to Ukraine’s Agriculture Ministry, 98% of spring grain planting is complete with overall acreage expected to be pretty much unchanged from 2011.