Higher on short-covering and strength in European wheat markets amid concerns about French crop quality.
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“Soybeans, wheat and corn are all being supported today by bargain hunting and technical buying following the low levels they hit on Tuesday in turn because of the outlook for large USA harvests this year”, said Frank Rijkers, agrifood economist at ABN AMRO Bank.
Trade awaits results of a wheat purchase tender by Egypt’s state grain agency GASC.
About 95% of the corn crop is at the silking stage, five days ahead of last year and almost two weeks ahead of the five-year average; while around 35% of the corn reached the dough stage.
While the 508 million bushel – 3.7 percent – increase in the consumption of U.S corn projected for the upcoming marketing year is large, an examination of use by category suggests the projections are reasonable.
Japan and South Korea have both taken steps to block certain imports of U.S. wheat after unapproved genetically-modified plants from Monsanto Co seeds were found growing in Washington state, a spokeswoman for the U.S. Department of Agriculture (USDA) said on Monday. Meanwhile, the soybean rating improved by 1.77 points from last week to 374.08, which is 20 points higher than year-ago. “Again the outlook for the very large US crop is limiting gains”. The corn crop is rated 83% good or excellent. Analysts had expected a decline in ratings. Commodity brokerage Linn & Associates on Wednesday projected US 2016 corn production at 14.775 billion bushels and soybean production at 4.073 billion bushels, both record highs. Prices for the grain recently have been trading at the lowest levels since September 2006. September wheat delivery was lower of 4.75 cents, or 1.17 percent, to 4.0125 dollars per bushel. Tennessee conditions were lowered by -1 percent; Nebraska, North Carolina, Pennsylvania, South Dakota and Texas -2 percent; OH conditions were lowered by -6 percent. Darrel Good, University of IL agricultural economist, says the 2016 growing season for those two crops is also entering the final stages, with weather over the next six weeks influencing the final yield outcome.
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Warm temperatures and timely rains kept crops in good condition over the past week in IL. Sixty-four percent of the soybean crop was setting pods, a week ahead of average.
