Grains and oilseeds are higher again on Thursday following the overnight session. The U.S. dollar is steady. Crude oil futures shot up again overnight amid ongoing attacks on tankers by Iran. Stock futures are pushing lower again.
CORN
Nearby May corn futures jumped 8 cents higher yesterday to $4.60 ¼. A bushel. Prices met some resistance before the close but were able to clear the level in the overnight trade.
Another run-up in crude oil continued to support the grain markets amid ongoing attacks on oil tankers in the Middle East.
U.S. ethanol production rose 2.8 percent last week to an average of 1.126 million barrels a day. The estimated corn crushed for ethanol was about 110.3 million bushels. Cumulative crushings for the marketing year rose to approximately 2.896 billion bushels, reaching about 52 percent of the USDA’s target.
SOYBEANS
The gap open higher in soybean futures held up during yesterday’s session after closing 12.25 cents higher at $12.14. Prices are testing Monday’s highs after the key market reversal failed to hold pressure on the soybean complex.
A pullback could find support near the $11.80 level after holding the breakout level.
There were reports that the EPA’s biofuel announcement could be more supportive for production and limit non-north American feedstock use than previously expected.
Reuters reported that Cargill suspended soybean exports from Brazil to China due to stricter phytosanitary inspections. The government introduced tougher inspections procedures for shipments to China, which is halting exports.
Brazilian supplies are likely piling up at ports as harvest progresses.
WHEAT
May Chicago wheat futures rose a steady 3.75 cents higher on Wednesday to $5.94 ¾. HRW wheat futures climbed 4.75 cents to $6.13 ½. Prices were higher in the session but met resistance near $6.24. That level proved to be tougher overnight.
Prices may remain bullish until the Iran situation stabilizes. Market fundamentals are largely bearish outside of supply disruptions.
Winter wheat areas are expected to receive drier than average weather over the next week. Recent rainfall helped improve drought conditions slightly, with 55 percent of winter wheat areas experiencing some level of drought. That still compared to just 27 percent of areas a year ago.
—
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.