Market News

Corn gains some ground with soybeans, wheat mixed

Soybeans were mixed, mostly weak, adjusting spreads. Planting and development weather in South America is generally favorable. Parts of Argentina could be a little drier next week, while the monsoon season seems to be in full effect for most of Brazil. A big question for soybeans right now is sustained demand from China as some anticipate another trade battle between the world’s largest economies under a second Trump administration. China, and unknown destinations, have been buying soybeans from the U.S. recently, while also still purchasing from Brazil. The USDA’s updated supply, demand, and production numbers are out Friday, with a fresh set of projections for Brazil from CONAB on the 14^th. Soybean meal was lower and bean oil was higher on aggressive product spread adjustments.

Corn was higher on fund and technical buying. Corn is monitoring the tail end of this year’s U.S. harvest, along with planting and development conditions in Argentina and Brazil. Feed, fuel, and export demand continue to be solid supportive factors. The U.S. Energy Information Administration says ethanol production last week averaged 1.105 million barrels a day, an increase of 23,000 on the week and 63,000 on the year, while stocks were reported at 22.02 million barrels, 249,000 above the previous week and 1.031 million more than a year ago, and ethanol exports averaged 109,000 barrels a day, 49,000 higher than the week before and 17,000 larger than last year.

The wheat complex was mixed, with Chicago mostly weak and Kansas City and Minneapolis modestly lower, seeing pressure from the strength in the dollar. The recent rain in the Plains and Midwest has delayed the late stages of winter wheat planting but should boost emergence and crop ratings, with more in the near-term forecast. The trade’s also watching planting and development weather in Europe and the Black Sea region, along with the harvest activity in Argentina and Australia. Russia and Ukraine continue to command most of the attention of the global wheat market, but aggressive shipments earlier in the marketing year, the potential for higher prices, and the ongoing war could slow down movement out of the region. The USDA’s weekly U.S. sales numbers are out Thursday morning.