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USDA numbers support soybeans
Soybeans were higher on speculative and commercial buying. USDA lowered the domestic production and yield, along with old and new crop ending stocks, and China bought another 290,000 tons of new crop U.S. beans Friday morning, Beijing’s third outright purchase of the week. In other words, fundamentals remain bullish and beans will continue to watch the weather closely. China’s General Administration of Customs reports July purchases were up 4% on the month and 10% on the year at 5.87 million tons and January to July imports were 34.92 million tons, 20% more than during the same period a year ago. August imports are projected at 4.37 million tons. Soybean meal and oil were higher, following beans. Dow Jones Newswires reports U.S. cash bean basis levels were up Friday on solid demand and the tight near term supply. Also according to Dow Jones, Argentina is allowing soybean crushers to import beans in an effort to fill out capacity, while increasing biodiesel export taxes to 32%. Taiwan bought 58,000 tons of U.S. soybeans.
Corn was lower on profit taking and demand concerns along with spillover from wheat. December hit a new highat $8.49 just after the USDA reports came out but backed off pretty quickly. USDA lowered the crop estimate more than 2 billion bushels, slashed the yield by more than 20 bushels and cut new crop ending stocks. However, the Ag Department did push old crop ending stocks back over the 1 billion bushel mark, lowering demand projections. Ethanol futures were lower.
The wheat complex was lower on commercial and technical selling. USDA made a larger than expected increase to the U.S. crop guess and made a bigger than anticipated increase to the ending stocks projection. However, the long term fundamentals continue to look bullish. European wheat was lower on spillover from the U.S. trade and the USDA reports. South Korea bought 105,000 tons of wheat from India, and in sell-buy-sell activity, Japan didn’t purchase any wheat but did pick up 1,500 tons of feed barley.
2012-08-10 16:24:23
Source: http://brownfieldagnews.com/2012/08/10/usda-numbers-support-soybeans/
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