CORN HIGHLIGHTS:

• Corn futures finished higher for the fourth consecutive session, closing with moderate gains. December contracts drew support from strength in other grains and tested resistance levels, but end-of-week profit-taking limited further upside. December corn gained ¾ cent to 422 ½, and March added 1 cent to 436 ½. For the week, December corn finished 9 ½ cents higher.
• A more positive tone on U.S.-China trade provided support to the soybean market on Friday, while spillover strength offered some optimism for corn.
• With harvest pushing the 50% level nationally, the lack of producers selling has helped support the market. Corn spreads between the front of the market versus deferred futures have been tightening as end users are trying to encourage movement of corn.
• The market will be shifting focus to South American weather as Brazil and Argentina are starting corn planting. Rain has fallen in key areas of the two countries, which should help promote a good start to their next year’s corn crops.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher for the second consecutive day after President Trump said that 100% tariffs on China were not sustainable and said he would in fact meet with China’s President Xi. November soybeans gained 8-3/4 cents to $10.19-1/2 and March gained 7 cents to $10.50-3/4. December soybean meal gained $4.10 to $281 and December bean oil gained 0.26 cents to 51.13 cents.
• USDA export sales reports are paused indefinitely but estimates for the export sales report ending the week of October 9 see soybean sales in a range between 400k and 1,400k tons with an average estimate of 975k tons. This would compare to 1,703k a year ago.
• Market talk indicates that China may auction 3.5 million tons of soybeans from state reserves, opting to rely on domestic stocks instead of buying Brazil’s higher-priced supplies. However, with President Trump expected to meet with President Xi in the upcoming weeks and a phone call planned soon, renewed trade discussions could set the stage for potential progress toward a deal.
• For the week, November soybeans gained 12-3/4 cents taking back all over last week’s losses and then some while March gained 13-1/4 cents. December soybean meal gained $6.00 for the week while December bean oil gained 1.16 cents.

WHEAT HIGHLIGHTS:

• Wheat closed with small gains in Chicago and Kansas City futures, but small losses for Minneapolis. December Chi was up 1-1/4 cents at 503-3/4, KC gained 2-3/4 to 491-1/2, and MIAX lost 1 cent to 548-1/2. Wheat remains a follower, trading near contract lows. Despite being oversold, a lack of fresh news has limited any short-covering rally.
• According to the Buenos Aires Grain Exchange, a cold front coming in next week could threaten Argentina’s wheat crop, which is currently rated 90% good to excellent. Harvest is expected to start next month; the BAGE has kept their production forecast unchanged at 22 mmt. This compares with the USDA estimate at 19.5 mmt and the Rosario Grain Exchange at 23 mmt.
• The Grain Industry Association of Western Australia has raised its estimate for the region’s wheat production by 8.6% to 12.6 mmt, which would set a record if realized. Total grain production in Western Australia could reach 25.5 mmt, just shy of the 2022 record of 26 mmt.
• Ukrainian grain exports so far this season are down 37% year over year at 7.9 mmt, according to their agriculture ministry. Of that total, wheat accounts for 5.6 mmt, which would be down 21% year over year.
• According to FranceAgriMer, the French soft wheat crop has been 27% planted as of Monday, an increase of 5% from the week prior. This is above last year’s pace by about 10% and compares with the five-year average of 22%.

DAIRY HIGHLIGHTS:

• Class III milk futures were mostly weaker heading into the weekend. The February contract saw the largest loss at 10 cents to close at $16.26.
• Spot cheese was up slightly by 0.375 cents to go home at $1.7725lb. Whey prices tacked on 1.50 cents to close at $0.6550/lb.
• Class IV milk futures were pressured by a poor butter trade today. November futures were down 14 cents to $14.02.
• Spot butter closed below the $1.60/lb level today at $1.5950/lb after losing 3.25 cents. Powder was slightly weaker, closing half a penny lower to $1.11/lb.

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Author

Amanda Brill