Market News
Soybeans, corn higher on last trading day of October
Soybeans were modestly higher in low volume on short covering and technical buying, closing higher for the week as well. Beans were up and down, watching some near-term U.S. harvest delays and planting activity in Argentina and Brazil. Domestically, the big question for beans is whether or not the USDA will raise its average yield projection in the next set of supply and demand estimates Tuesday, November 9th. In the background, the market is also paying attention to slower than anticipated demand by China and the faster than average planting pace in Brazil, which would lead to an early harvest, limiting the prime window for U.S. exports. Unknown destinations made two 2021/22 U.S. soybean purchases for a combined 354,350 tons. That could turn out to be China when its time for delivery. Soybean meal and oil ended the session higher on the positive tone in the soy complex.
Corn was modestly higher on commercial and technical buying, finishing the week with solid gains. Corn also continued to monitor the U.S. harvest pace, along with planting activity and development weather in South America. Near-term conditions are favorable for Argentina and Brazil, but there are long-term concerns because of the anticipated impact of a La Nina pattern. The Buenos Aires Grain Exchange says 28% of Argentina’s corn crop is planted, slower than average, but with 73% rated good to excellent. Mexico bought 279,415 tons of 2021/22 U.S. corn ahead of the open. Export demand has been great, largely due to the near total absence of China, but has improved to some extent recently, while feed and fuel demand are relatively consistent positives. Ethanol futures were unchanged.
The wheat complex was mixed. Minneapolis was higher, with continued support from the global supply fundamentals and solid demand outlook for some types. The December through May MGEX contracts all closed above $10 with a strong weekly finish. Chicago was mostly lower and Kansas City was down even as some soft red winter areas are too wet, while drought is an issue in the hard red winter region. The drier than normal conditions in the U.S. Plains are expected to worsen if La Nina makes its expected appearance. The winter wheat pits also posted good week-to-week gains. The Buenos Aires Grain Exchange sees Argentina’s wheat crop at 19.8 million tons, up 600,000 from the previous guess, but 200,000 below the current Ag Ministry expectation. 47% of Argentina’s wheat crop is called good to excellent, above a year ago.
