Market News

Corn manages firm weekly close

Soybeans were modestly higher on short covering and technical buying but posting week to week losses. Contracts were due for a bounce and harvest activity in some areas has been delayed by rain. Some damage has been caused by this month’s weather, but the full extent won’t be known for a while. Unknown destinations bought a total of 260,000 tons of U.S. soybeans, with 200,000 tons for delivery in 2018/19 and the remainder for 2019/20. China’s tariff on U.S. beans continues to hang over the market. President Trump and President Xi could meet next month at the G20 in Argentina, but no substantive discussions have been announced. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Brazil’s presidential election is Sunday and could lead to changes in their fiscal and trade policies. According to AgRural, 46% of Brazil’s soybean crop is planted, maintaining the record pace. New, lower, CBOT price limits go into effect November 1^st.

Corn was modestly higher on short covering and technical buying, helping contracts finish the week firm. Corn also saw an oversold bounce, while monitoring harvest delays in key U.S. growing areas, which could continue into early next week. New USDA supply, demand, and production estimates are out November 8^th. The U.S. corn crop has likely lost at least some yield potential, but the crop is still in very good shape for this time of year, according to the most recent set of weekly numbers from the USDA. The next weekly crop progress and condition report is scheduled for its usual time Monday afternoon. Weekly export inspections numbers are also due out Monday. Ethanol futures were higher.

The wheat complex was higher on short covering and technical buying, but still losing ground on the week. Winter wheat planting has been delayed by rainfall in some areas and while the precipitation is generally welcome, it could ultimately restrict acreage in parts of the Midwest and Plains. The fundamental outlook continues to be bearish, but the global supply could get tighter as the growing season continues. Australia’s Bureau of Agricultural and Resource Economics lowered its production outlook to 16.6 million tons, cutting widespread drought conditions that could be further exacerbated by an expected El Nino pattern. According to wire reports, Russia’s ag minister raised its 2018/19 wheat export outlook from 30 million tons to 33 to 34 million. Friday, Egypt bought 350,000 tons of wheat from Russia, along with 60,000 tons each from the U.S. and Ukraine. The U.S. offer was actually the lowest when taken as FOB, but shipping costs raised prices enough to push Cairo towards Russian supplies.