Market News

Soybeans, corn, wheat up to start week

Soybeans were higher on short covering and technical buying, rallying after the mixed business for much of the session. South American planting and development conditions generally look favorable, with the trade expecting big crops. Ahead of Monday’s open, Mexico bought 261,264 tons of U.S. soybeans, the Philippines picked up 135,000 tons of U.S. bean meal, and India purchased 30,000 tons of U.S. soybean oil, all for delivery during the current, respective marketing years. Soybean meal was up on that export demand and oversold signals, with bean oil following the other soy complex components. Soybean export inspections were below a week ago, above a year ago, and more than what’s needed to meet projections for 2024/25. China and Germany were the top destinations. Indonesia’s government says it is preparing to implement a 40% biodiesel blend program in 2025. Indonesia’s palm oil exports for October 2024 were 2.258 million tons, up 26% from September.

Corn was higher on short covering and technical buying.  With the U.S. corn harvest over, the focus is firmly on the planting and development weather in Argentina and Brazil. The USDA’s updated supply, demand, and production numbers are out December 10^th, with CONAB’s updated outlook for Brazil set to be released December 12^th. Export and ethanol demand continue to be solid, providing some support. Corn, and soybeans, like wheat, also found support in the lower trade in the dollar during Monday’s session. Export inspections were up on the week and the year, led by Mexico and Japan. Even with the recent slowdown for inspections, the pace remains ahead of what’s needed to meet USDA estimates. China’s General Administration of Customs says corn imports for October were 250,000 tons, a drop of 88% on the year, with year-to-date imports 30% behind the prior year’s pace.

The wheat complex was higher on fund and technical buying, along with the lower trade in the dollar during the session. The trade is monitoring the rising Black Sea region tensions, which could impact exports for Russia and Ukraine. Still, that’s been said for nearly the entire duration of the war and the U.S. will also have to contend with wheat from Argentina and Australia hitting the global market. Wheat was expecting the USDA’s crop condition rating to be up on the week after the recent rain in the Plains and parts of the Midwest. The USDA says 49% of U.S. winter wheat is rated good to excellent, 5% higher than last week, with 94% of the crop planted and 84% emerged, both close to the respective five-year averages. Wheat export inspections were down from the prior week and this time last year, primarily to Mexico and Taiwan. Approaching the back half of the marketing year, the 2024/25 pace remains ahead of 2023/24. China’s General Administration of Customs says October wheat imports of 220,000 tons fell 66% on the year, with the overall pace 1% ahead of a year ago.