Soybean futures rebounded modestly on Friday, a day after suffering sharp losses on the lack of confirmation of new Chinese export business.
With confirmation of new China business still absent from the market, soybeans today got a lift from deteriorating crop prospects in Brazil. Yesterday, government statistical agency Conab put the 2018-19 Brazilian soy crop at 118.8 million tonnes, down only modestly from its previous guess of 120.07 million, despite recent dry weather. However, Safras & Mercado today slashed its Brazilian soybean crop projection by 6.5 million tonnes to 115.72 million. A new estimate of the Brazil crop was due today from the USDA but that was delayed due to the ongoing partial U.S. government shutdown. March soybeans gained 3 ½ cents to $9.10 ¼ and November was up 4 cents at $9.52.
Wheat futures were higher on news American wheat was priced competitively enough to win at least a portion of a recent Algerian tender. According to the CME market comment, US wheat is also close to US$1.50/bu under Black Sea wheat prices at the ports, pointing to additional export business. March Chicago wheat climbed 5 ¾ cents to $5.19 ½, March Kansas City added 5 ¾ cents to $5.04 ½ and March Minneapolis was 6 cents higher at $5.70.
Spillover support from soybeans and wheat boosted corn. Further support came from an updated estimate from Safras & Mercado which showed Brazil’s 2018-19 corn crop at 93.366 million tonnes, down 1.53 from the prior estimate. March corn added 2 cents to $3.78 ¼ and new-crop December gained 2 ½ cents to $4.01 ½.
Live cattle futures were mixed today, while lean hogs were lower.
Source: DePutter Publishing Ltd.
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