Market News

Soybeans, corn, wheat see modest Friday losses

Soybeans were lower on profit taking and technical selling, pulling contracts to a modestly lower weekly finish. Development conditions in South America are expected to stay generally favorable through at least the end of the year. The Buenos Aires Grain Exchange says 64.7% of Argentina’s soybean crop is planted. Unknown destinations bought 200,000 tons of 2024/25 U.S. beans ahead of the open, pushing the two-day announced sales total to 534,000 tons. That could turn out to be China when it’s time for delivery. Soybean meal and oil were down on technical pressure. The NOPA’s November 2024 member crush numbers are out Monday, with an average guess of 196.713 million bushels, which would be down from October, but up from November 2023.

Corn was modestly lower on profit taking and technical selling, while still seeing a slight week-to-week gain. Corn is monitoring development weather in Argentina and Brazil. The Buenos Aires Grain Exchange says corn planting in one state of Argentina is being delayed by dry conditions, with only scattered showers expected in some areas until later this month. Still, any dry stretch could be somewhat mitigated by mild temperatures. Nationally, the Buenos Aires Grain Exchange says 55.6% of Argentina’s corn crop has been planted. Demand is good, but is showing some signs of weakening, with export sales sharply below a week ago and ethanol margins tightening, which could discourage production. There is also the uncertainty about biofuels policy in general under the incoming second Trump administration.

The wheat complex was lower on profit taking and technical selling, along with the mostly firm trade in the dollar during the session. Wheat continues to watch harvest activity in the Southern Hemisphere, and development weather in the Northern Hemisphere. The most active months at the three U.S. pits did finish the week mixed, mostly firm. Export sales are ahead of last year but have slowed down recently. There’s not only ongoing competition from Russia, but Argentina is emerging as a significant player in the global market, currently commanding the lowest world wheat price. The Buenos Aires Grain Exchange says 63.9% of Argentina’s wheat crop has been harvested. According to reports, the state of Western Australia is expected to produce 10.83 million tons of wheat, the third largest on record, with harvest expected to wrap up in the next couple of weeks. The USDA’s next round of supply, demand, and production numbers is out January 10^th.