Market News
Soybeans, corn down on South American weather
Soybeans were sharply lower on speculative and technical selling. Conditions in South America are favorable with Argentina and Brazil both on track for big crops. The USDA’s next round of supply, demand, and production numbers is out January 10th, while CONAB’s updated outlook for Brazil is set for the 14th. Very early harvest activity is underway in parts of Brazil. South American production expectations pulled January soybeans and meal to contract lows, while bean oil was pressured by biodiesel concerns and global vegetable oils. That’s also the lowest mark for the most active soybean contract in more than four years. Malaysia’s Palm Oil Board has raised its export tariff for January to the highest level, 10% per ton, in response to higher prices. Colombia bought 120,000 tons of 2024/25 U.S. soybean meal Wednesday morning.
Corn was lower on speculative and technical selling. Corn is monitoring development weather in Argentina and Brazil. The USDA’s attaché in Brazil estimates new corn crop at 128 million tons, compared to the official guess of 127 million tons and the old crop total of 122 million tons. Exports are seen at 48 million tons, compared to 44 million last marketing year. Colombia purchased 135,000 tons of 2024/25 U.S. corn ahead of the open and ethanol production was up on the week. The U.S. Energy Information Administration says production averaged 1.013 million barrels per day, an increase of 25,000 on the week and 32,000 on the year, while stocks were reported at 22.636 million barrels, a decline of 12,000 from the prior week and 270,000 from a year ago. Ethanol exports averaged 163,000 barrels per day, rising 40,000 from the week before, but falling 33,000 from this time last year. China’s General Administration of Customs says corn imports for November 2024 were 300,000 tons, a drop of more than 90% from November 2023. China’s government says it will end auctions of imported corn from state reserves to prop up domestic prices.
The wheat complex was mostly modestly lower, generally unable to follow through on the firm start to the session. Russia’s wheat crop is in dismal shape heading into dormancy, while Ukraine’s crop looks good. The trade’s also watching harvest results in Argentina and Australia. Those two nations are expected to pick up a significant chunk of business once Moscow’s export tax and higher tariff rate goes into effect in February. The USDA’s weekly U.S. sales numbers are out Thursday morning. The USDA’s attaché for Brazil sees wheat production at 8.2 million tons, compared to the official projection of 8.1 million tons, which was also the old crop total. Imports are expected to be up on the year, with much of that likely sourced from Argentina.
Add Comment