CORN HIGHLIGHTS:

• Selling pressure in soybeans and comfortable corn supply expectations fueled additional long liquidation, weighing on corn December corn lost 2 ¾ cents to 478, and March futures slipped 3 ¼ cents to 491. The weakness today pushed corn to its lowest close since August 13.
• The technical picture in the corn market is defensive with the recent weakness. December futures closed under the 200-day Moving Average for the first time since August 12. This could be a swing point on corn charts. Key will be additional follow-through pressure going into Friday’s close.
• Weekly ethanol production increased last week to 313 million gallons. This is up 3 million gallons from last week, but down 1% YOY. A total of 104.5 mb of corn was used for ethanol production last week.
• Brazil Ag Agency, CONAB, released its first forecasts for the upcoming production year. Corn planted area is expected to reach 23.7 million hectares (58.6 million acres), up 4.9% from last year’s total. Total corn production is expected to rise to 148 MMT, up 2% over last year.
• USDA will release weekly export sales on Friday morning. Last week’s export sales totaled 30 mb, toward the low end of expectations. Early marketing year export sales have been lackluster at 796 MB, down 34% from last year, and well behind the pace to reach the USDA export target for the 2026-27 marketing year.

SOYBEAN HIGHLIGHTS:

• Soybeans finished the session lower as harvest pressure continues to weigh on prices. November soybeans closed 14-1/4 cents lower to $12.63-00 while March futures closed at $12.86-1/4, down 13-3/4 cents.
• NOPA Crush for September fell to a 13-month low at 196.3 mmt. This was down 4.5% from August and 0.8% lower than September 2025. Soyoil stocks totaled 1.053 billion pounds, down 12.3% from August and the lowest month end level since November 2014.
• Chinese state buyers were reported to have purchased another round of U.S. soybean cargoes overnight, marking a second consecutive day of purchases. The latest buying is estimated at 8–10 Panamax cargoes.
• Brazil is expected to see a record soybean production for 2026/27 according to Conab. The group sees total production reaching 181.6 mmt, up 0.7% from the group’s prior forecast. The group cited an increase of 1.4% to the planted area as the reason for the higher production estimate.

WHEAT HIGHLIGHTS:

• Wheat futures closed lower across the board today, pressured by sharp losses in soybeans, which broke through support and posted double-digit declines. Weakness in MATIF wheat futures added further pressure to the U.S. market. In the December contract, Chicago lost 3-1/4 cents to 670, Kansas City was down 2 cents at 713, and MIAX fell 4 cents to 686.
• After reaching a new 18-month high yesterday, the U.S. Dollar Index dropped significantly today. This came after the PPI report this morning which showed producer prices up 1.3% in September, which was well above expectations for a 0.6% increase. Year over year, prices were up 6.3%, which also exceeded expectations of up 5.5%. Nevertheless, wheat did not draw much support from the lower Dollar today.
• According to Russia, despite Black Sea shipping restrictions, they will be able to meet Egypt’s grain demand. For reference, SovEcon is estimating Russia will export 2.5 mmt of wheat in October. If realized, this would be 0.1 mmt below last month, and well below the 5.4 mmt shipped in October 2025.
• Egypt’s state grain buyer has reportedly increased quality requirements for wheat imports. This is said to be due to quality concerns from some exporters, including Bulgaria, who’s wheat carries lower “W” values. The “W” values measure bread making quality, with a higher rating allowing for the production of better dough. With current Black Sea shipping restrictions, this move could further restrict Egypt’s sourcing options.
• According to the USDA, as of October 13, an estimated 38% of U.S. Spring wheat acres were experiencing drought conditions. This is a 1% decline from the week prior. During the same time period, winter wheat areas in drought held steady at 53%.

DAIRY HIGHLIGHTS:

• Class III milk futures finished Thursday’s session mixed, with November gaining 38 cents to $17.25, while most 2027 contracts closed lower.
• Spot cheese prices climbed 12 cents today, closing at $1.61125/lb. Spot whey also posted gains, rising 0.50 cents to finish at $0.890/lb.
• Class IV futures continue lower with November down 17 cents at $20.50.
• Spot butter rose 4 cents to close at $1.3450/lb, while spot powder fell 6 cents to finish at $2.150/lb.

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Author

Amanda Brill