Soybeans were steady to higher on technical buying and spillover from the higher corn and crude oil. Traders were watching the weather with the crop heading into a critical development phase. In any event, the near term supply is tight and demand looks neutral to supportive. Soybean meal was mostly firm and oil was modestly higher, following soybeans. The Soybean Processors Association of India, via Dow Jones Newswires, reports 98% of India’s soybean crop is planting, increasing greatly afternoon improved monsoon rainfall.
Corn closed near session highs thanks to speculative and commercial buying. Corn was also watching the weather with the bulk of the crop at or very near key development periods. Given the high heat seen in important crop growing areas, USDA will more than likely trim yield at least somewhat in the August supply and demand update. Corn demand has declined lately but the nearby supply is fairly tight and there’s not much room for error in calculating this year’s crop size. Ethanol futures were higher.
The wheat complex closed higher on in low volume on short covering and spillover from corn. There are concerns about winter crop yields and the slow development of the spring crop. Also, there’s talk of increased wheat feed use by U.S. livestock producers. European wheat was lower on the increased export competition from Russia and Ukraine. According to Commonwealth Bank of Australia, Eastern Australia crops need rain badly.