CORN HIGHLIGHTS:

• Corn futures finished higher on Wednesday as buying strength helped pull the front end of the corn market higher. December corn finished 3 ¼ cents higher to 423, and March futures gained 2 cents to 435 ¾.
• Bull spreading remains a driver in the front end of the corn price as the Dec/March corn spread gained 1 ¼ cents to finish at –12 ½. This is the narrowest spread the has traded since April. The strong tone of demand in the export market and the lack of farmer selling are what are supporting the strength in the spread.
• Thursday morning typically has export sales report released, but with the government shut down, that report is still going unreported. Analysts have given projections for corn sales with a range of 800,000 mt-2.0 MMT. The market has expected corn export demand to remain strong.
• Restriction of barge flow on the Mississippi River due to low water levels can increase costs of transportation to the Gulf. Those increased costs will likely be reflected in basis levels along the river for cash prices.
• After three straight sessions of gains, the U.S. Dollar Index encountered technical resistance on Wednesday, potentially signaling a near-term shift in momentum.

SOYBEAN HIGHLIGHTS:

• Soybeans were mixed today with gains in the front months but losses in deferred contracts. November soybeans gained 4 cents to $10.34-3/4 while March gained ¼ cent to $10.63 and November 2026 lost 2 cents to $10.70-3/4. December soybean meal gained $3.10 to $290 and December soybean oil lost 0.58 cents to 50.07 cents.
• Back-month pressure stemmed from President Trump’s comments that the U.S. may consider curbs on exports to China involving U.S.-made software — from jets to laptops — in retaliation for Beijing’s latest rare earth export restrictions. The escalation could complicate near-term trade negotiations.
• Early next week, Trump is set to meet with Japan’s new Prime Minister Takaichi where they will discuss potential U.S. investments. Takaichi will discuss purchases of US soybeans, pickups, and gasoline, and may invest as much as $550 billion in the US in exchange for lower auto tariffs.
• The U.S. soybean harvest is estimated by Bloomberg polls to be 74% complete with a range between 61-80%. This would compare to last week’s survey guess of 60% and would compare to 81% from the USDA at this time a year ago.

WHEAT HIGHLIGHTS:

• Wheat closed with gains in all three U.S. futures classes today. Without much in the way of fresh news to drive the market, this was likely a technical move higher. Dec Chi was up 3-1/2 cents at 503-3/4, KC gained 3-1/2 cents to 488-1/2, and MIAX closed 3 cents higher at 547-3/4.
• Argentine wheat is reportedly at a significant discount to the US. Their FOB values are said to be near $208 to $210 per mt, which is about $16 to $18 below HRW offers at the US Gulf. This will likely limit upside for the US market. Furthermore, Argentina’s wheat harvest is set to begin in November, with a potential record 23 mmt crop anticipated.
• U.S. winter wheat planting is estimated to be more than 75% complete, though progress could slow as a storm system brings rain across the Southern Plains Thursday, with lighter showers expected in the Great Lakes region.
• Northern China has recently seen excess heavy rain. This is not only affecting harvest progress and quality of spring-sown crops but is also causing concern about winter wheat planting. Their winter wheat planting typically begins in October. According to China’s national climate center, the northern provinces of Henan and Shandong have had the rainiest season in 60 years.

DAIRY HIGHLIGHTS:

• Class III milk futures finished mixed, with November gaining 16 cents to close at $17.14, while December slipped 1 cent to $16.50.
• Spot cheese fell again, losing 2.25 cents to close at $1.7475/lb, while spot whey remained steady at $0.6700/lb.
• Class IV milk futures continued their slide, with November falling 14 cents to close at $13.88.
• Spot butter continued its decline, losing 3.50 cents to close at $1.5450/lb, while spot powder inched up 0.50 cents to $1.1200/lb.
• Yesterday’s Global Dairy Trade (GDT) auction was revised to show a 1.4% decline from the previous event.

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Author

Amanda Brill