CORN HIGHLIGHTS:

• A larger-than-expected yield reduction on the November WASDE report and an explosive soybean rally helped push corn futures higher on the session. December corn gained 9 ¾ cents to 449, while the March futures added 9 ¼ cents to 461 ½.
• In the November WASDE report, the USDA lowered corn yield by 1.6 bu/acre to 179.6 bu/acre. This move lowered forecast production by 141 mb. Despite demand cuts of 25 mb for both exports and residual category, new forecasted ending stock was reduced to 1.758 bb, down 91 mb from last month.
• Despite the production forecasts, corn carry out is still nearly 200 mb above the September forecast, and stocks-to-use ratio remains comfortable at 10.8%. These factors, plus reduced demand forecast, likely limited the corn rally.
• The USDA announced another flash export sale of corn on Tuesday morning. Mexico stepped into the export market and purchased 372,000 MT (14.5 mb) of corn for the 2026-27 crop year. This was the fifth known purchase of corn by Mexico since the start of November. Currently, export sales to Mexico are approximately 100 mb behind last year’s pace.
• South American weather remains overall friendly for corn and soybean planting in Brazil. Recent 7-day forecast models are looking for above-normal precipitation and moderate temperatures for central growing regions of Brazil.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day sharply higher thanks to a surprisingly bullish WASDE report that showed a small increase in yield but increased U.S. export demand and a decline in global stocks. Funds stepped back in a big way as buyers know that the ending stock situation has tightened.
• November soybeans gained 42-1/4 cents to $12.24-1/2, taking back a whole past week of losses. March soybeans gained 39-1/2 cents to $12.34-1/2, December soybean meal gained $5.80 to $326.50, and December soybean oil gained 0.74 cents to 62.77 cents. Percentagewise, soybeans gained much more than both soybean products.
• Highlights from today’s WASDE report included a slight increase in U.S. soybean yield to 53.3 bpa from 53.1 bpa in October, which was largely expected. USDA raised export demand by 25 mb, helping reduce ending stocks by 15 mb to a relatively tight 300 mb. Global ending stocks were also lowered to 123.5 MMT from 124.3 MMT last month, adding to the bullish tone of the report.
• The Crop Progress report saw the soybean harvest at 92% complete, compared to 88% last week and the 5-year average of 91%. Soybean harvest is just slightly below its typical pace.

WHEAT HIGHLIGHTS:

• The wheat complex closed modestly higher today despite a surge in the U.S. dollar and a neutral to slightly bearish section on this morning’s WASDE report. Support for wheat futures largely came from the sharp rally in corn and, primarily, soybeans. In the December contract, Chicago climbed 4-3/4 cents to 592-3/4, Kansas City gained 1-3/4 cents to 634-1/4, and MIAX rallied 6-1/2 cents to 628-3/4.
• On today’s report, the USDA pegged US 26/27 wheat carryout at 743 mb. This was up 3 mb from October, but 4 mb below the average pre-report estimate. Globally, 25/26 ending stocks rose 1.3 mmt to 282.9 mmt, and for 26/27 they increased 4.8 mmt to 280.8 mmt – both of those figures were higher than expected.
• Other notable adjustments in today’s data include the world wheat production estimate rising by 5.12 mmt to 827.51 mmt. This was in part due to Argentina and Australia production figures both increasing 1.5 mmt to 23.0 mmt and 32.5 mmt, respectively. Additionally, exports out of Russia and Ukraine were each dropped by 1 mmt, to 39.0 mmt and 11.5 mmt in that order.
• According to the USDA’s Crop Progress report, winter wheat plantings advanced 6% on the week to 89% complete, falling just 1% short of the five-year average. Additionally, 76% of the crop has emerged versus 74% on average. Furthermore, 49% was rated good to excellent, up 5% from the week prior.
• So far in November, rains in southern Brazil have caused some disruptions to wheat harvest and fieldwork. The looming El Niño weather pattern has caused market uncertainty as well. According to CONAB, an estimated 66.9% of Brazil’s wheat planted area has been harvested as of October 30.

DAIRY HIGHLIGHTS:

• Class III futures were mixed today as November and December contracts were higher while deferred contract months saw a drop.
• Spot cheese was seen improving 2.6250 cents to $1.66250/lb. Whey fell 1.50 cents to go home at $0.8350/lb.
• Class IV futures found some buying demand today despite a drop in powder. December futures gained 15 cents to close at $20.25.
• Spot butter improved half a cent to $1.2650/lb while powder fell 3.25 cents to close at $2.15/lb.

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Author

Amanda Brill