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Soybeans end session with modest gains
Soybeans were modestly higher on commercial and technical buying. The cash basis is up with harvest nearly over and crush demand continues to be strong. The USDA says 94% of U.S. soybeans are harvested, compared to the five-year average of 85%. The trade is also monitoring planting weather in Argentina and Brazil. Forecasts generally look favorable, with widespread rainfall expected over the next few days. After the early delays, activity in both countries has gotten closer to the respective average paces. Unknown destinations bought 132,000 tons of 2024/25 U.S. soybeans Monday morning. Export inspections for the week ending Halloween were down from the previous report, but above a year ago, primarily to China and Mexico. The 2024/25 pace continues to run just ahead of 2023/24. Soybean meal was higher and bean oil was lower on the unwinding of previously established product spreads.
Corn was narrowly mixed, mostly steady to firm. There were harvest delays to start the week in parts of the Midwest and Plains, but the precipitation is welcome. As of Sunday, 91% of U.S. corn is harvested, compared to 75% on average. Corn is also watching planting and development weather in South America. Mexico and unknown destinations purchased 2024/25 U.S. corn ahead of the open, 150,000 tons and 120,000 tons, respectively. Export inspections were below the prior week, but up from last year, with Mexico and Japan topping the list. The pace this marketing year continues to run well ahead of the previous marketing year. The USDA’s attaché in South Africa projects 2024/25 corn production at 16.5 million tons, compared to the official guess of 17 million and the 2023/24 total of 13.299 million tons. Exports are seen at 2.1 million tons, compared to 2 million last marketing year.
The wheat complex was mixed. Weekend rainfall was disappointing in some areas, but there’s more in the forecast into mid-month for both the hard red and the soft red winter regions. According to the USDA, 41% of U.S. winter wheat is in good to excellent shape, up 3% on the week, with 87% planted and 66% emerged, both behind their respective normal paces. Wheat’s also watching planting and development weather in Europe, Russia, and Ukraine, along with early harvest activity in Argentina and Australia. The USDA’s updated supply, demand, and production numbers are out Friday. U.S. export inspections were down on the week, up on the year, mainly to the Philippines and South Korea. 2024/25 inspections are moving out faster than 2023/24. Egypt issued a tender for an unspecified amount of wheat. Most, of not all of that, will likely be Black Sea origin.
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