Chinese Soybean Purchase Lifts Soybeans

In the overnight session the grains traded higher with soybeans leading the way up 9 1/4 cents. Corn jumped 2 cents and wheat climbed 3 ½ cents to help erase some of the losses seen yesterday. Crude oil is trading 37 cents higher and the U.S dollar is up .6 percent after the Fed Chairman Janet Yellen said she expects rate hikes later on this year. It was announced this morning an export sale of 260,000 metric tons of U.S. Soybeans to be delivered to China for 15/16.

Soybeans are higher this morning after China inked a deal in Iowa to purchase 13.18 million metric tons of U.S. soybeans to be delivered in 16/17 valued at 5.3 billion dollars. The deal is viewed by traders as mostly “frame contracts” with the details to be settled at a later date.

There were a few tenders this morning with the Taiwan Flour Millers association issuing an international tender to purchase 89,150 metric tons of milling wheat and the Korea Flour Mills Corp. purchasing 23,000 metric tons of wheat.

In this week’s Chinese state auction for corn only 35,861 metric tons of corn was sold making up only .7 percent of the total amount of corn offered this week. The corn was sold at an average price of 2,271 yuan per metric ton. This week’s state corn sales were the worst performing state auction this year.

—Cody Bills