CORN HIGHLIGHTS:

• Strength in wheat on Thursday helped lift corn futures off session lows, with corn finishing mixed to slightly lower. December corn lost ½ cents to 451 ¼, while the March contract slipped ¼ cents to 464 ¾. December corn closed the session 3 ¾ cents off the session low.
• A Bloomberg report of China buyer COFCO was inquiring for U.S. wheat export prices triggered a short covering rally in the wheat market as prices reversed off session lows. The buying strength in the wheat market spilled over and helped support the corn market.
• The USDA released the weekly export sales report on Thursday morning. For the week ending October 22, U.S. exporters reported new sales of 1.304 MMT (51.3 mb). Unknown and Mexico were the largest buyers of U.S. corn last week. Total corn export commitments now total 925 MB, which is down 34% from last year, and behind the pace to reach the USDA target for the marketing year.
• As harvest gets closer to completion, the corn market will likely focus on the actions of the spreads and cash markets to determine price, while uncertainty about total production may still be in front of the market.
• Mid-term elections are on Tuesday, November 3. As the election date moves closer, markets in general could see some position squaring and choppiness as the results could shift some policy changes and uncertainty. 

SOYBEAN HIGHLIGHTS:

• Soybeans finished lower but recovered from session lows. Pressure came from weakness in crude oil and the approaching first notice day for November futures. Funds continue to sell the soy complex despite strong export sales, as expectations for higher yields weigh on the market.
• November soybeans lost 4-3/4 cents today closing at $12.19-3/4 while March lost 2-1/2 cents to $12.43-1/2 in bear spreading action, and both contracts once again closed below the 100-day moving average. December soybean meal lost $6.40 to $329.30 and has lost $27.60 this month so far. December soybean oil gained 0.08 cents while December crude oil is down $0.48 to $102.27.
• Today’s export sales report was strong once again for soybeans with an increase of 94.7 million bushels for the 26/27 marketing year and no sales for 27/28. Top buyers were China, Spain, and unknown destinations. Last week’s export shipments of 87.6 million bushels were well above the 31.7 mb needed each week to meet the USDA’s export estimates.
• Markets have faced pressure from the rapid pace of the U.S. harvest, which is expected to deliver strong yields, along with Brazil’s fast planting progress. However, one firm warns that the developing El Niño weather pattern could reduce Brazil’s yields by as much as 10%.

WHEAT HIGHLIGHTS:

• Wheat finally found support, with all three classes finishing higher. Gains were driven by reports of potential Chinese interest in purchasing U.S. SRW wheat. In the December contract, Chicago gained 4-3/4 cents to 603-3/4, Kansas City was up 2-1/4 cents at 645-1/4, and MIAX climbed 4-3/4 cents to 624-1/2.
• The USDA reported an increase of 31.2 mb of wheat export sales for 26/27, and an increase of 0.8 mb for 27/28. Shipments last week only amounted to 9.8 mb, which falls under the 15.0 mb pace needed per week to reach their 750 mb export goal. Total 26/27 wheat export commitments now sit at 423 mb, down 29% from last year.
• A reversal lower in the U.S. Dollar Index also supported wheat prices. The dollar weakened after the Commerce Department reported Q3 GDP growth of 3.4%, above expectations of 3.1%.
• On a bearish note, news outlets have reported that at least one ship has so far passed through the Kerch Strait and into the Black Sea. This comes just a day after Russia announced plans to allow for permits to travel through this shipping lane.
• According to Rusagrotrans, Russian wheat exports during the month of November may exceed 3 mmt. They also left their October estimate unchanged at 3 mmt. Despite Black Sea shipping logistics issues, they have been using alternative export routes.

DAIRY HIGHLIGHTS:

• Nearby Class III futures fell today, with November futures settling 38 cents lower, while the 2027 contracts were green.
• Spot cheese fell a half cent today, just a quarter cent up on the week, while whey gained a penny for a $0.82/lb finish.
• Class IV futures were up double digits today with November moving to $20.78, up 33 cents on the week.
• While still down on the week so far, butter was up 3.50 cents and powder gained 4.75 cents today for a nice Class IV spot trade.

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Author

Brandon Doherty