Soybeans Close Higher on Demand, South American Weather; Corn Declines
Soybeans closed higher on strong demand and dry weather in South America, while corn futures were lower at the close on Wednesday.
Demand for U.S. soybeans has been strong this year amid low prices. Bean sales since the start of the marketing year on September 1 are up almost 30% compared with the same time frame a year earlier, according to the Department of Agriculture. Exporters reported a sale of 426,000 metric tons to China earlier this week.
Dry weather in South America is also giving beans a boost. Commodity Weather Group said in a report this morning that dry weather in parts of Brazil and Argentina will persist for at least the next 10 days.
Corn sales also have been been strong. Yet, without any weather premium built in for the grain, price increases may be hard to come by.
Soybean futures for January delivery rose 2¢ to $10.49 3/4 a bushel on the Chicago Board of Trade. Soymeal futures lost $1 to $320.90 a bushel and soy oil added 0.01¢ to 37.83¢ a pound.
Corn futures for March delivery lost 2 1/4¢ to $3.58 1/4 a bushel in Chicago.
Wheat futures dropped as soft red winter for March delivery declined 4 3/4¢ to $4.02 a bushel. Hard red winter futures lost 3 3/4¢ to $4.01 1/4 a bushel.