Market News

Soybeans eke out modest gains, corn, wheat down

Soybeans were modestly higher short covering and technical buying, along with spillover from bean meal. The trade’s watching the generally favorable planting and development weather in South America. After a slow start in Argentina and Brazil, improved weather has allowed the planting paces to pick up steam. The USDA’s next monthly supply, demand, and production report is out December 10^th, with CONAB’s updated outlook for Brazil scheduled for the 12^th. Domestic crush margins remain bullish but have narrowed. Export inspections last week were below the week before, but above last year, primarily to China and Mexico. Soybean oil was down on product spread adjustments and spillover from a drop in crude oil.

Corn was lower on fund and technical selling. Corn is monitoring the planting and development conditions in Argentina and Brazil. Most of Brazil’s first crop is for domestic use, so the big test will be the second crop, which is planted after soybeans are harvested. Ukraine’s Ag Ministry says 23.6 million tons of corn have been harvested, 5% below the year ago total. Mexico bought 454,090 tons of U.S. corn ahead of the open, with 364,792 tons for 2024/25 delivery and 89,298 tons for 2025/26. Corn export inspections were up on the week and the year, with Mexico and Japan leading the way. The 2024/25 pace continues to run ahead of 2023/24.

The wheat complex was lower on fund and technical selling. There’s much-needed rain in the forecast for parts of the Black Sea region and the USDA’s winter wheat crop rating was expected to be up on the week thanks to recent precipitation. The USDA says 55% of U.S. winter wheat is in good to excellent condition, a gain of 6% on the week, with 97% of the crop planted and 89% emerged, both close to the respective five-year averages. The trade’s also watching harvest activity in Argentina and Australia, in addition to planting and development conditions in Europe, Russia, and Ukraine. Ukraine’s Ag Ministry says 22.4 million tons of spring wheat have been harvested, nearly steady with 2023. U.S. export inspections were higher than the prior week and a year ago, with Japan and the Philippines topping the list.