Market News

Soybeans end session mixed as corn, wheat see profit taking

Soybeans were narrowly mixed. Contracts were down early, rallied with a higher move in meal, but as those gains eased, the gains in soybeans did as well. Meal futures were supported by crush margins, demand expectations, and product spread trade, while bean oil was pressured by that spread trade and the losses in crude oil. Traders continue to monitor U.S. yield numbers along with planting conditions in South America. Export sales were a multi-week low at a still solid 62.5 million bushels, mostly to China and unknown destinations. There’s ongoing optimism about next week’s U.S./China trade meeting in Washington D.C., with talk about a reduction or suspension of tariffs.

Corn was modestly lower on profit taking and technical selling. Near-term harvest conditions generally look favorable, with traders also watching South America. The USDA will update their supply, demand, and production outlook on October 9^th, while CONAB’s next set of numbers for Brazil will be out October 15^th. Corn export sales were a three-week low, possibly starting to reflect increased competition out of South America. Sales were 40.4 million bushels, headlined by Mexico and Japan. Early planting is underway in parts of Argentina and Brazil.

The wheat complex was lower on profit taking and technical selling. Even with the slowdown in movement by Russia and Ukraine, U.S. wheat exports continue to be slow because of relatively high prices. Sales of 12 million bushels were up on the week while matching the five-week average, primarily to the Philippines and Mexico, with a notable cancelation by unknown destinations. Stateside, the focus is on winter wheat planting, especially the hard red winter activity in the Central and Southern Plains, along with the spring wheat harvest. The USDA’s Small Grains Summary is out at the end of the month, along with the Quarterly Grain Stocks report. Globally, the market is watching harvest delays in parts of Canada and conditions in Argentina and Australia. France’s AgriMer sees 2026/27 soft wheat exports to non-European Union nations at 6.3 million tons, 700,000 less than the last guess, and inside the E.U. at 7.1 million tons, a cut of 300,000 tons, due to a smaller crop.