Market News
Corn, soybeans, wheat mixed Friday
Soybeans were mixed, adjusting spreads. Contracts consolidated ahead of the holiday shortened week, expecting much lighter business. Thanksgiving will push back the USDA’s weekly export sales numbers to Friday morning. The trade continues to watch U.S. harvest activity and conditions in South America. The faster than average planting pace in Brazil will likely make their beans available for export sooner than normal, which has limited demand for U.S. beans to some extent. Soybean meal was up on continued concerns about available supplies, including from Argentina, the world’s biggest exporter of soybean products. Bean oil was down on product spread adjustments.
Corn was mixed in spread trade. Corn was also squaring up positions ahead of much lighter trade during Thanksgiving week. Markets will be closed Thursday for the holiday, with business resuming Friday morning. Near-term harvest delays are possible in parts of the U.S., while La Nina conditions are emerging in South America. Both Argentina and Brazil are expected to see a drier pattern starting in the coming week. The Buenos Aires Grain Exchange says 29% of Argentina’s crop is planted and 91% is in good to excellent condition. Ethanol futures were unchanged.
The wheat complex was mostly higher. Chicago and Kansas City were up, with weather issues for both hard and soft red winter wheat. While important condition ratings for wheat aren’t when the crop heads into dormancy, but when it emerges, wet weather in the eastern Midwest and drought in the southern U.S. Plains will have an impact on production and possibly limit acreage. Minneapolis was mixed on spread adjustments. Russia’s wheat export tax will rise again in the coming week. However, export demand for U.S. wheat continues to be slow, even with that tighter global supply. 18% of Argentina’s wheat crop has been harvested, with the USDA’s next set of supply and demand estimates out December 9th.
