Market News

Soybeans, corn see more harvest pressure

Soybeans were lower on commercial and technical selling, with the most active months declining more than $.10. The trade was watching U.S. harvest activity, expecting good progress in many areas, along with planting in South America. Planting for Brazil’s new crop is ahead of average and the trade expects another record. China canceled on 180,000 tons of U.S. soybeans and unknown destinations canceled on 120,000 tons of optional origin, all or part of which would have been U.S. origin. Both of those are likely connected to the Chinese tariff on U.S. soybeans, with President Trump and President Xi potentially meeting at the G20 summit in Argentina next month. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was modestly lower on commercial and technical selling, with contracts finishing the week modestly lower. Corn was also watching U.S. harvest activity, expecting generally good progress in many key U.S. growing areas. Recent conditions may have lowered the national yield at least slightly. New USDA supply, demand, and production numbers are out November 8th. The USDA’s Cattle on Feed report could actually be a little bearish for corn over the long-term, with placements below what most analysts were expecting. Ethanol futures were mixed, mostly weak. The Buenos Aires Grain Exchange says 33% of Argentina’s corn crop is planted and overall, South American conditions generally look good.

The wheat complex was mostly firm with Kansas City and Minneapolis up on short covering and technical buying and Chicago mixed, adjusting old crop/new crop spreads. Contracts were due for a bounce, but the fundamental outlook remains bearish and all three U.S. pits finished the week in negative territory. The complex is monitoring U.S. winter wheat planting. Activity has been delayed in some areas, but the soil moisture is generally welcome. The trade also has an eye on global crop conditions and the potential for increased demand for U.S. wheat because of losses by competitors. Syria has an open tender for 200,000 tons of milling wheat.