Monday's weekly expert inspection report showed the power of seasonal buying in beans with 41.1 m.b. of beans inspected for near term export. This was over the week prior of 10.5, our four week average of 12.5 and the highest weekly inspection number since February 28 when we saw 48m.b. This surge in demand is expected as the U.S. soybean harvest winds down. The US is the world's number 1 producer exporter and the only exporting county harvesting beans now leaving U.S. ports as the world's primary port of origin for beans. The world's number one importer China was in for 32.2 m.b. of the total versus the four prior weeks of 4.6, 15.6, 4.6 and 2.5 m.b. A 70 cent drop in prices last week certainly helped in the size of purchases.
Corn futures were higher on the month and week , so they saw a smaller increase in exports coming in at 29.4 m.b. versus the week prior of 21.2 and four week average of 30. It's clear the bigger buying occurs on breaks but its harvest time in the US and that shows up on every major importers calendar. But with beans it's here and it's now to buy or wait for South American beans next February. Monday saw all grains open higher on talk weekend meetings over the European debt crisis went well and moved close to a resolution. Even though stocks and crude oil prices settled sharply higher, grain saw funds use the rally to take month end profits with corn 12 cents off the opening highs, wheat down 8 and beans at midsession 16 cents off its highs. That should be a common theme this week as funds use the market and especially rallies to book profits and pay those bonuses earned. Profit talking comes in many forms. Sometimes news lends to consecutive down days and others to just pulling profits off rallies. Example, if corn opens20 cents higher but closes unchanged for two consecutive days, essentially prices are unchanged, yet 40 cents of profit are removed. Today, Tuesday saw overnight and day session opening highs fade to lower at midsession. It appears Wednesday we will have another meeting in Europe over the debt crisis. This should keep breaks to a minimum but continue to sell rallies near term. December corn support lies at 6.40 and resistance at 6.68. A close over resistance and 6.82 is next. A close under support and 6.22 is next. November bean resistance is 12.38 then 12.71. Support is 12.00.
December wheat support is 6.20 with resistance 6.50 then 6.70. The long and short of this week is funds will use it to pull month end profits out, especially on rallies. Also, by Friday we should have a low that will be a buying low into the November 9 U S D A crop report. We want to be long ahead of it as the fear is the USDA will lower production again and maybe ending stocks now that demand is surfacing.