Market News

Soybeans see strong close on soybean oil strength

Soybeans were higher on commercial and technical buying. There was also spillover from soybean oil, which was supported by the strength in palm oil. Export sales were down on the week, but larger than average at 74.9 million bushels, with China and unknown destinations in the lead, and it was a solid week for shipments. Planting and development weather in South America continues to look generally favorable. Soybean meal followed beans and bean oil higher. China’s General Administration of Customs says October soybean imports were 8.087 million tons, a four-year high for the month, with the year-to-date pace 11.2% faster. Brazil’s Trade Ministry says October soybean exports were 4.71 million tons, a year-to-year decline of 16%, while soybean meal exports were 2.368 million tons, a rise of 24%.

Corn ended a two-sided session modestly higher on fund and technical buying, along with the strength in soybeans. Export sales were up solidly on the week at 108.9 million bushels, with Mexico and unknown destinations taking the top slots, and unknown bought another 120,000 tons of 2024/25 U.S. corn ahead of the open. It remains to be seen if unknown is China or another buyer. More near-term late harvest delays are likely in parts of the Midwest, but in general, that soil moisture recharge is welcome. Corn is also watching planting and development conditions in Argentina and Brazil. CONAB’s updated outlook for Brazil is scheduled for the 14th. Brazil’s Trade Ministry says October corn exports were 6.406 million tons, 24% less than last year.

The wheat complex was lower on fund and technical selling. There’s more precipitation in the forecast for some hard and soft red winter growing areas, boosting the soil moisture profile before the crop goes into dormancy. That should boost the pace of emergence and the USDA’s crop condition rating. Still, portions of the eastern Midwest have been short-changed and precipitation after the crop emerges from dormancy is a much larger indicator of eventual crop size and quality. Globally, the trade’s watching planting and development conditions in Europe, Russia, and Ukraine, and harvest activity in Argentina and Australia. U.S. export sales were below a week ago at 13.8 million bushels, mostly to Mexico and unknown destinations. The 2024/25 remains ahead of 2023/24, but the trade continues to speculate the pace would be even faster without the Black Sea price advantage. The trade was also getting ready for the USDA’s supply and demand numbers, out Friday.