CORN HIGHLIGHTS:

• The corn market was mixed on Wednesday, as prices consolidated within yesterday’s trading range. The market saw bull spreading with strength in the December contract. December corn futures gained 2 cents to close at 434, and March added ¾ cents to 446 ¾.
• Weekly ethanol production slipped 1.9% week-over-week to 1.091 million barrels/day for the week ending October 24. Production was below expectations. An estimated 109 mb of corn was used last week in ethanol production.
• Technically, the corn market remains supported, though the December contract continues to face resistance near the 200-day moving average at 437.
• A meeting between President Trump and President Xi of China is scheduled for tomorrow. The prospects of a trade deal are helping support grain futures.
• The Federal Reserve’s 0.25% rate cut Wednesday afternoon strengthened the U.S. dollar, which may act as a headwind for grain prices heading into Thursday’s session.

SOYBEAN HIGHLIGHTS:

• Soybeans were mixed to end the day after two days of massive gains and a gain of 60 cents over the past two weeks. Today’s quiet trade comes ahead of the meeting between President Trump and Xi. November soybeans were up 2 cents to $10.80-1/4 while March was down 1-1/2 cents to $11.05-1/4. December bean meal was up $2.20 to $308.70, and December bean oil was down 0.10 cents to 50.16 cents.
• Tomorrow in South Korea, President Trump will meet with Chinese President Xi about a trade agreement. This news will likely come tonight local time due to the time difference. While no details are known, Trade Secretary Scott Bessent has indicated that U.S. farmers would be happy with the deal.
• China reportedly purchased three cargoes of U.S. soybeans yesterday—two out of the Gulf and one from the Pacific Northwest—the first such purchase in months. While the volume was small, it was viewed as an encouraging sign ahead of trade talks. Still, most of China’s near-term soybean needs have already been covered by South American supplies.
• In Brazil, soybean crushing is expected to hit a record high of 177 mmt for 25/26 according to Rabobank, which would be up 3% year to year. Brazilian planted soybean area is estimated at 48.8 million hectares, which would be up 2% from the previous year.

WHEAT HIGHLIGHTS:

• Wheat had a mixed close. Light bull spreading was noted in both Chicago and Kansas City futures, in which there was more buying interest in the front months compared to the back months. December Chicago gained 3-1/4 cents to 532-1/4, Kansas City rose 2-3/4 to 522-3/4, while Minneapolis slipped 1-1/4 to 560-1/2. Like soybeans, wheat appears to be in “wait-and-see” mode ahead of the upcoming meeting between President Trump and Chinese President Xi.
• According to the European Commission, EU soft wheat exports as of October 26 totaled 6.2 mmt since the season began on July 1. This represents a 21% decline from the 7.9 mmt shipped during a similar period last year.
• LSEG commodities research has estimated Australian 25/26 wheat production at 34.8 mmt, which is up 2% from the last forecast. This bump is said to largely be supported by satellite imagery, which shows good vegetation density in wheat-growing regions.
• One private estimate has pegged China’s 26/27 wheat production at 141 mmt, with planted area steady with the prior season at 23.62 million hectares. Winter wheat in China is typically planted between September and November, but the planting pace has been delayed due to heavy rains in October.

DAIRY HIGHLIGHTS:

• Class III milk futures ended mixed, with October and November down one cent, while December gained 19 cents.
• Spot cheese rose 0.1250 cents to close at $1.8225/lb, while spot whey remained unchanged at $0.700/lb.
• Spot butter slid again, losing 0.75 cents to close at $1.5550/lb, while spot powder fell 2 cents to $1.1625/lb.
• Class IV milk ended the session down, with November down 12 cents and December down 13 cents.

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Author

John Heinberg