Soybeans finish lower, corn, wheat mixed
Soybeans closed lower on profit taking and technical selling, following the lower moves in soybean products. Export sales were up on the week, mostly to China, but sales did fall below the four-week average. While it was a solid week for shipments and China was the big buyer, the overall pace remains behind 2020/21 and China is also buying beans from Brazil. The trade is also watching the tail end of the U.S. harvest and conditions in South America. Palm oil was higher ahead of the U.S. session, which did provide initial support for bean oil.
Corn was mixed, adjusting old crop/new crop sales. The U.S. corn harvest should be able to wrap up in some areas soon, while there are concerns about dry weather in South America. Exports were down on the week and lower than average, with Canada and Mexico the leading buyers. China continues to ignore U.S. corn in favor of Ukraine, despite the U.S. price advantage. Ethanol futures were unchanged. The International Grains Council raised its global corn production projection, citing the U.S crop.
The wheat complex ended the session mixed, mostly lower, unable to follow through on early gains. Chicago and Kansas City December contracts notched new highs ahead of that lower move, following the lead of Paris. The big driver is the tightening world supply and export sales were up on the week, with Nigeria topping the list. Physical shipments remain slower than what’s needed to meet projections for the current marketing year, with the halfway point on December 1st. Dry weather is an issue in the Southern Plains and wet weather is a problem in the eastern Midwest. Strategie Grains lowered its outlook for European Union wheat exports citing high prices. The International Grains Council cut its outlook for global production, including a cut for Iran due to drought.