CORN HIGHLIGHTS:

• December corn futures traded to their highest level since July 3 on Tuesday as short covering and technical buying triggered strength in the grain markets regarding trade optimism pushing prices higher. December corn traded as high as 436 ¼, before settling 3 ¼ cents higher to 432. March gained 1 ¾ cents to 446.
• December corn futures have rallied 27 cents since the October 14 low at 409. Resistance over the top of the December futures is the 200-day moving average at 437. December corn hasn’t closed over this point since May 23. Producer selling likely limited the upside potential in the December contract late in the session.
• Market analysts projected the corn harvest to be nearly 72% complete this past week as the harvest moves into its later stages. Corn harvest is likely moving past the “harvest pressure” stage with less than 30% remaining. Last year, the corn harvest was 81% complete for this date.
• The U.S. and Japan finalized and signed a trade deal on Tuesday. Over the last five years, Japan has averaged $14.3 billion in U.S. ag imports. An average of 18% of that total was Japanese corn imports from the U.S.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher for the second consecutive day and have gained 36-1/2 cents on the week and 72 cents over the past 2 weeks. November gained 11 cents today to $10.78-1/4 while March gained 11-1/4 cents to $11.06-3/4. December soybean meal gained $8.30 to $306.50 and December soybean oil lost 0.51 cents to 50.26 cents.
• President Trump and China’s President Xi will meet this Thursday to discuss a trade deal, and Treasury Secretary Bessent indicated that China is expected to resume “substantial” purchases of U.S. soybeans, with the planned 100% tariff for November 1 reportedly withdrawn. Prices will likely react strongly on Thursday morning to whatever the trade deal results are.
• Surveys estimate that 84% of the soybean crop is now harvested with guesses ranging between 80 and 88%. This would compare to 74% at this time a week ago and 89% a year ago.
• Yesterday’s export inspections report saw 1,061k tons of soybeans inspected for export, which compared to 1,590k last week and 2,631k tons a year ago. Top destinations were to Mexico, Egypt, and Italy. Export demand has been decent, given China’s absence.

WHEAT HIGHLIGHTS:

• Wheat posted gains today, albeit most contracts settled at least a nickel below session highs. Initial strength faded when soybeans lost upward momentum around 11 AM – corn and wheat followed. December Chicago gained 3 cents to 529, Kansas City was up 6 at 538, and MIAX closed 1-1/2 higher at 561-3/4.
• Southern areas of Argentina saw temperatures dip below freezing this morning. This may have caused some wheat crop damage and should be watched closely. Current FOB wheat offers out of Argentina are reportedly about $27/mt below U.S. HRW wheat at the gulf. This is the equivalent of roughly 73 cents per bushel.
• A Reuters analyst survey suggests that the U.S. winter wheat crop is 85% planted, which would be above last year’s pace of 80%. Additionally, 50% of the crop is believed to be in good to excellent condition, well above the 38% figure from a year ago.
• Speculative traders are estimated to have purchased about 5,500 contracts of Chicago wheat yesterday, bringing their net short position below 90,000 contracts. Open interest also dropped by about 6,000 contracts, which suggests that there was a healthy amount of short covering going on.
• Continued rainfall has disrupted and delayed wheat harvest in southern Brazil, especially in Parana. According to CONAB, about 38% of the nation’s wheat crop has been harvested so far. Domestic wheat prices in Brazil have fallen despite the slow harvest, largely due to high ending stocks and competitive imports.

DAIRY HIGHLIGHTS:

• Class III milk futures were lower on the day, giving back more than what was gained just a day prior. December futures closed 23 cents lower to $17.13.
• Spot cheese improved 2.375 cents to close at $1.82125/lb. However, this was not enough to raise Class III prices. Whey continues its upward momentum, gaining a penny to close at $0.70/lb.
• Class IV futures backed off slightly today on pressure from lower butter prices. The February contract saw the largest loss of 25 cents, closing at $14.40.
• Spot butter fell 3.75 cents to go home at $1.5625/lb while powder tacked on 1.25 cents to close at $1.1825/lb.

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Author

Brandon Doherty