Market News

Soybeans finish day, week modestly higher

Soybeans were modestly higher on commercial and technical buying, helping contracts finish firm on the week. Unknown destinations bought 100,000 tons of 2018/19 U.S. beans, but the weekly numbers were bearish, as China’s tariff continues to impact demand. President Trump said during the session that China “wants to make a deal” but that was downplayed by White House officials. Low level talks have occurred recently, but little progress is expected before the G20 in Argentina. The trade is watching the U.S. harvest, expecting more near-term delays, along with development conditions in South America. Brazil looks good, while parts of Argentina need to dry out. Soybean meal was up sharply on new demand talks, while bean oil was down on profit taking and product spread adjustments.

Corn was modestly lower on profit taking and technical selling, ending the week modestly lower as well. Corn is also monitoring the slow tail end of this year’s U.S. harvest and South American development conditions. Weekly export numbers were bullish, with Mexico the leading buyer, and physical shipments remain ahead of the USDA’s projected pace. Weekly export inspections are out Monday and next week’s export sales report is pushed back until Friday because of Thanksgiving. Ethanol futures were weak. The industry is watching margins and waiting for implementation of year-round E15 availability. A resolution to the trade dispute would also probably be a positive for ethanol and sorghum.

The wheat complex was mixed, with Chicago consolidating, Kansas City modestly higher on winter wheat planting concerns, and Minneapolis down, despite hard red spring making up the bulk of the weekly export sales. Winter wheat planting remains slow and some intended acres just might not get planted, either because of weather or the slow soybean harvest pace in double cropping areas. The improved soil moisture levels are generally welcome as the crop gets closer to dormancy. Chicago did post a firm weekly finish, but Kansas City and Minneapolis had modest week to week losses. Nearly halfway through the marketing year for wheat, exports remain bearish. Saudi Arabia is tendering for 475,000 tons of milling wheat and Morocco remains in the market for 45,455 tons of durum.