Market News

Soybeans regain some losses

Soybeans were higher on short covering and technical buying. Contracts bought back less than half of Monday’s drop, ending Tuesday’s session under the day’s highs. Harvest remains slower than normal, but the upside is limited by China’s tariff on U.S. beans and uncertainties ahead of the G20 later this month. The White House has recently sent conflicting signals on advancements on trade and tension was noted at last weekend’s Asia-Pacific Economic Conference. President Trump and President Xi are expected to meet in Argentina at the G20. Soybean meal was supported by an oversold bounce and bean oil was narrowly mixed, with support from beans and meal against pressure from the drop in crude oil futures. Unknown destinations bought 123,567 tons of 2018/19 U.S. soybeans. According to the most recent reports, Brazil’s planting could wrap up soon, but Argentina has been delayed by wet weather. The weather is also creating concerns about the potential for rust in some of northern Brazil’s beans.

Corn was modestly lower on fund and technical selling in light pre-holiday trading volume. The corn harvest is also slower than average, but parts of the Midwest and Plains are expected to see a warmer, drier pattern heading into the weekend. Corn is less affected by wet and cold conditions, but there have been reports of mold and other quality concerns. Unknown destinations canceled on 200,588 tons of 2018/19 U.S. corn. The USDA’s weekly export sales report will be out Friday morning, delayed by Thanksgiving. Ethanol futures were steady to weak. The U.S. Energy Information Administration’s weekly ethanol production and stocks report is out Friday. The industry continues to wait for more details on year-round E15 availability and other possible changes to the RFS by the EPA. Wednesday’s Cattle on Feed report is expected to be nominally positive for feed demand prospects. Corn continues to watch planting and development conditions in South America.

The wheat complex was mixed, with Chicago mostly firm, Kansas City modestly lower, and Minneapolis mostly weak. Winter wheat planting and emergence are also slower than normal because of weather and those soybean harvest delays. The fundamental outlook is bearish, with new supply and demand estimates out December 10th. Turkey is tendering for 240,000 tons of wheat and Bangladesh is looking for 50,000 tons of wheat, while Japan is in the market for 99,462 tons of food wheat from the U.S. and/or Canada. In addition to the slow U.S. harvest, the trade’s watching development conditions for several key export competitors. Australia’s Bureau of Meteorology says there’s a 70% chance of El Nino pattern developing this year, primarily impacting crop development in the southern Hemisphere. According to wire reports, Pakistan’s government has approved exports of 500,000 tons of subsidized wheat. Grain and oilseed futures have a day off Thursday for Thanksgiving and a shortened session Friday.