Market News

Soybeans, corn, wheat mixed in a quiet post-holiday session

Soybeans ended the day mixed with another day of unsurprising light-volume trade, this time post-holiday. The USDA announced a sale of soybeans to unknown destinations for the current marketing year. The USDA also announced 151,700 mt of soybeans received by unknown destinations. Export sales for the previous week notched a marketing-year high for soybeans. Development conditions in South America continue to look favorable, with more rain on the way for some areas. South America appears to be on track for a very large crop this year, but there are months to go until harvest. That could limit the upside potential for the soybean market in the near at midterm, unless there is a significant change in expectations.  The USDA’s next round of supply, demand, and production numbers is out December 10^th, while CONAB’s updated outlook for Brazil is set for the 12^th. Soybean meal was higher on Wednesday, while soybean oil moved lower on profit taking. 

Corn was mixed, mostly modestly higher in light trade volume. Corn export sales have been running well above last year at this time but have pulled back in recent weeks.  The USDA’s export sales for corn showed a substantial decline from the previous week’s totals. Countries like Mexico and South Korea remain strong buyers of U.S. corn, along with Guatemala and Colombia.  Concerns about tariffs and a trade war aren’t impacting the trade too much, but concerns do linger.  The trade continues to monitor the weather situation in South America, so far conditions look favorable for a large crop.  The USDA’s next set of supply and demand numbers come out on December 10^th. 

The wheat complex was also mixed in a relatively quiet session.  U.S wheat remains at a competitive disadvantage on the global market.  There is harvest pressure from both Argentina and Australia.  Russian wheat continues to remain more competitively priced on the global market.  along with price competition from the Black Sea Region.  The USDA’s final U.S. winter wheat rating ahead of dormancy is solid at 55% good to excellent, that’s a significant improvement in recent weeks.