Soybeans manage firm Friday finish
Soybeans were modestly higher on short covering and technical buying, losing ground on the week, but still up for the month. Weather outlooks generally have a drier pattern for Argentina and parts of Brazil, but planting has accelerated after the recent rain. AgRural says 42% of Brazil’s crop is planted, slightly behind average after a roughly two-week delay, which could extend China’s reliance on U.S. beans into 2021. Brazil’s tight supply of soybeans has pushed prices higher and the nation’s minister of the economy says that if they continue to rise, the import tariff on beans from outside of the Mercosur bloc could be reduced to zero. There’s been talk, but no confirmation, that Brazil has purchased U.S. soybeans. Unknown destinations bought 121,500 tons of 2020/21 U.S. beans Friday morning. Soybean meal and oil were higher, following the bounce in beans. Products are also waiting to see if crush workers in Argentina decide to strike again.
Corn was mixed, mostly firm on commercial spread trade, ending the week lower and the month higher. The U.S. harvest has been delayed in some areas but should pick up steam again over the next few days thanks to a generally warmer, drier weather pattern. The USDA’s weekly crop progress numbers are out Monday afternoon. Corn also has an eye on the tail end of the harvest in Ukraine and planting weather for South America. The delay in planting soybeans has also pushed back corn planting, especially for Brazil’s critical second crop, which is planted after their soybeans are harvested. Ethanol futures lower.
The wheat complex was mixed, with Chicago and Kansas City down and Minneapolis mostly firm, and all three sharply lower for the week. The global supply outlook is still bearish, even if the International Grains Council did lower their estimate Thursday, and while weather has trimmed production in some nations, it’s been beneficial for others. The USDA’s next set of supply, demand, and production estimates is out November 10th. Most forecasts have a return to dry conditions in parts of Russia and the southern U.S. Plains. Ukraine could see decent near-term rainfall, but after that, forecasts are less certain. DTN says Ethiopia is tendering for 400,000 tons of wheat from Russia.