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Soybeans Close Higher on Mexican Demand; Wheat Drops

Mexico buys U.S. soybeans, corn for 2018-2019 marketing year.

Soybeans closed higher after Mexico bought U.S. supplies while wheat futures plunged on Monday.

The U.S. Department of Agriculture said this morning that Mexico purchased 142,500 metric tons of soybeans for delivery in the 2018-2019 marketing year that starts on September 1. 

Mexico also bought 142,248 metric tons of corn for delivery in the 2018-2019 marketing year and 71,124 tons for delivery in 2019-2020, the USDA said.

Prices for both soybeans and corn dropped on Friday and in the overnight session after the USDA said it now expects soybean production of 4.586 billion bushels on yields of 51.6 bushels an acre, topping forecasts for 4.407 billion bushels on yields of 49.6 bushels an acre. The government in July had expected output of 4.31 billion bushels on yield of 48.5 bushels an acre.

Corn production was pegged at 14.586 billion bushels on yields of 178.4 bushel per acre, topping forecasts for 14.411 billion bushels and yields of 176.2 bushels an acre. The USDA last month estimated the crop at 14.23 billion bushels on yields of 174 bushels an acre.

Soybean futures gained 7½¢ to $8.69¼ a bushel on the Chicago Board of Trade. Soy meal gained $6.20 to $329.50 a short ton, and soy oil was added 0.18¢ to 28.59¢ a pound.

Corn for December delivery fell ¾¢ to $3.71 a bushel in Chicago.

Wheat, however, plunged as a heat wave in Europe subsides and analysts forecast strong production in Argentina. Speculative investors raised their net-long positions, or bets on higher prices, to the highest level in six years.

Wheat dropped 10¼¢ to $5.36½ a bushel in Monday trading while Kansas City futures plunged 15¾¢ to $5.69¼ a bushel. 

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