Market News

Corn, soybeans, wheat down on profit taking

Soybeans were modestly lower on profit taking and technical selling. The USDA confirmed harvest is slower than average, but many areas are expected to see a more conducive weather pattern. Questions about quality will continue even after the crop is fully harvested and probably even after the USDA’s final 2018 totals are released next January. Two vessels of U.S. beans are reportedly headed to China, leaving from the United States, not a third party. Those beans might have been purchased because U.S. beans are cheaper than Brazilian supplies right now, even with the tariff. President Trump and President Xi are expected to meet at the G20 event in Argentina next month, but no formal discussions have been announced. Soybean meal and oil were lower on profit taking. The trade continues to monitor South American planting efforts.

Corn was modestly lower on profit taking and technical selling. Corn also gave back some recent gains, while watching harvest activity resume in parts of the Midwest and Plains. Part of the crop has likely been damaged, the question is by how much will USDA reduce yield in its next set of projections. New USDA supply, demand, and production numbers are out November 8th. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol production and stocks update is out Wednesday. Corn is watching planting in South America and getting ready for Friday’s USDA Cattle on Feed report, which could imply continued solid feed demand. There are also the governmental matters of year-round E15 use and passage of the USMCA.

The wheat complex was modestly lower on profit taking and technical selling. Winter wheat planting in parts of the Midwest and Plains is being delayed by rain, but that’s mostly welcome, especially in parts of the southern Plains. Some areas however are flooding, probably leading to replanting. Emergence is ahead of average nationally, with some areas about to go into dormancy. The trade is also watching some combination of planting, development, and harvest conditions in Australia, the Black Sea region, Canada, Europe, and South America. Japan is tendering for 127,688 tons of milling wheat from the U.S., Australia, and/or Canada, while South Korea is in the market for 60,000 tons of optional origin feed wheat.