Market News

Soybeans, wheat have a solid start to the week

Soybeans were higher on commercial and technical buying.  Nationally, soybean harvest is 91% complete, slightly behind last year and 5 points ahead of the five-year average.  Soybeans got some support from ongoing weather concerns in Brazil and strength in soybean oil Monday.  Traders continue to monitor weather conditions in Brazil and Argentina.  The USDA’s updated supply and demand outlook and new estimates for Brazil from CONAB are both out November 9^th. China purchased nearly 140,000 tons (4.6 million bushels) of soybeans for delivery during the current marketing year. The USDA says 76.6 mb of soybeans were inspected for export which has the total for the current marketing year down 5% at 448 million bushels.  Total sales and shipments of soybeans for 2023-2024 are down 28% compared to year-ago levels. 

Corn was mixed, adjusting spreads.  According to the USDA 81% of corn harvest is complete nationally, that’s slightly behind lats year’s pace and ahead of the 5-year average. Near-term harvest conditions look mostly favorable, aside from rain showers in some areas. Much of the Corn Belt is expected to see a warmer temperatures over the near-term as well, which could allow some key states to wrap up harvest activity in short fashion.  Mexico has purchased nearly 320,000 tons (11.4 million bushels) of corn for delivery during current marketing year.  Mexico is the biggest buyer of U.S. corn, purchasing mostly yellow corn for livestock feeding use.  Export inspections from the USDA report 21.1 million bushels of corn were inspected.  That has the 2023-2024 total inspections up 23% from year-ago levels. 

The wheat complex was higher on short covering and technical buying.  This is the fourth consecutive day higher for December Kansas City wheat.  Winter wheat planting is 90% complete, just behind last year’s pace and just head of the 5-year average.  Seventy-five percent of the crop is emerged, up from last year and the 5-year average. Traders will be watching this week’s Supply and Demand report.  Russia continues to be at the center of discussions in relation to the wheat crop as it continues to hold a price advantage. Ukraine is still exporting grain, just at lower amounts, and the recent rumored demand for U.S. wheat from China hasn’t come to fruition.  Dry weather has limited southern crops, which could also provide some export support for US wheat.