U.S. Weekly Grain Market in Review for January 7, 2011
Compared to last week, soybeans were steady to slightly higher, with corn closing on Thursday with double-digit losses, wheat closed mostly higher for the week. Wheat had sharp gains on Monday and Wednesday of this week, before a sharp sell-off in the grain market on Thursday.
The higher U.S. dollar index may keep wheat under pressure. Wheat had export sales above expectations at 464,700 tonnes (17.1 mb). Weekly export sales for corn were bearish at 369,000 tonnes (14.5 mb) which were below expectations. Soybeans for the most part were on the defensive this week as long liquidation selling was active. Demand for soybeans remains strong with export sales coming in above expectations at 552,700 tonnes (old and new crop combined) with old crop sales at 489,300 tonnes (18.0 mb). Strength of demand should remain positive for soybeans and provide support for the soybean market.
Argentina weather is also calling for increased chances of rain over the coming weekend which also put pressure on the markets. Grain markets this week are also positioning themselves ahead of next week’s USDA Supply and Demand and stocks report. The thought of tightening global supply and demand should continue to support the markets in the long term.
Wheat was mostly 10-22 cents higher. Corn was mostly 9-17 cents lower. Soybeans closed steady to 7 cents higher for the week.
—-by Steven R. Cheney, USDA