Market News

Soybeans finish week higher as solid domestic demand provides boost

Soybeans were higher on commercial and technical buying, cementing a higher weekly finish. Domestic demand continues to be solid, reflected in Wednesday’s NOPA September crush numbers, and there was some help from another round of gains in bean meal. The trade’s watching the U.S. harvest and planting in South America. The U.S. harvest has likely passed the halfway point, but the USDA’s weekly crop progress and condition numbers continue to be delayed by the partial shutdown of the federal government. China reportedly bought soybeans from Brazil for November delivery. Face-to-face tariff talks between the U.S. and China scheduled for Halloween appear to be on track. U.S. soybeans are favorably priced when compared to Brazil, until Beijing’s tariff is factored in. Soybean meal futures were supported by demand expectations, and bean oil was up on that positive tone in the soy complex.

Corn was modestly higher on commercial and technical buying, closing out the week with gains. Corn was expecting near-term harvest delays in parts of the Midwest, while monitoring planting conditions in South America. Planting weather does look favorable in much of Argentina, but parts of Brazil wouldn’t mind some rain. CONAB’s updated production outlook for Brazil, including first crop corn planting, is out November 13^th. The Buenos Aires Grain Exchange says 30% of Argentina’s corn crop is planted, with production projected at 61 million tons. A grain group in Ukraine says that nation’s corn harvest is slower than normal at just 15% complete. Overall demand is solid, especially for ethanol and exports. Feed demand is somewhat of question because of competition from other ingredients, like bean meal and feed wheat.

The wheat complex was mixed, with Chicago and Kansas City up and Minneapolis down, which is also how those three pits ended the week. While the wheat market remains oversold, rising global supplies have kept most contracts near the recent lows. That includes larger crops in Canada, Europe, and Russia, and generally favorable projections for production in Argentina and Australia. The Buenos Aires Grain Exchange says 90% of Argentina’s crop is good to excellent but did note the potential for cooler weather later this month potentially having an impact on condition. U.S. wheat is competitive on the export market after the recent decline in price, which did help provide some support for the winter wheat pits, while the spring wheat pit essentially continued its downward drift. U.S. winter wheat planting delays are likely, but the soil moisture is welcome for these development stages ahead of dormancy.