Market News
Soybeans tick up despite weak exports, corn, wheat supported by demand
Soybeans were modestly higher on short covering and technical buying. Argentina’s grain export tax suspension has ended after reaching Buenos Aires’ $7 billion goal, which reportedly included a lot of soybeans to China. U.S. export sales were below a week ago at 26.6 billion bushels, with nothing to China. Last week’s big U.S. buyers were Egypt and Taiwan. The purchase list did include unknown destinations. China continues to stay away from U.S. soybeans, against seasonal trends, because of tariff tensions. China reportedly is willing to buy U.S. soybeans, if the U.S. removes some tariffs and commits to expanding bilateral trade. Soybeans are watching the U.S. harvest pace, along with planting weather in Argentina and Brazil. Soybean meal futures were lower and soybean oil was higher on the adjustment of product spreads.
Corn was modestly higher on short covering and technical buying. Corn export sales were up on the week at 75.7 million bushels million bushels, with nearly half of that to Mexico, reflecting their strong demand despite expectations for an increase in domestic production. Unknown destinations was in the second slot, with that to be revealed at the time of shipping. Corn is monitoring U.S. harvest activity and South American planting conditions. The USDA’s updated supply, demand, and production numbers are out October 9th, while CONAB’s new outlook for Brazil is set for October 14th.
The wheat complex was higher on short covering and technical buying. Export sales were above a week ago and larger than average at 19.8 million bushels, and higher prices in Russia could boost demand further for some types of U.S. wheat. The Philippines and Italy led the way last week and 2025/26 sales are ahead of 2024/25, but there were a handful of relatively minor cancelations. Development conditions look favorable in Argentina and Australia, with some production estimates for both nations already rising. That, along with bigger crops in Canada and Europe, could lead to more competition for export market share in the coming weeks and months. Dry conditions are an issue for winter wheat planting in Black Sea adjacent portions of Russia and Ukraine.
Add Comment