CORN HIGHLIGHTS:

• December corn traded lower, leading the corn market down for the session. Corn futures struggled to gain support despite buying strength in the soybean and wheat markets on Wednesday. Harvest pressure and the pricing of grain supplies limited the potential for price gains in the corn market.
• The corn market has consolidated over the past three sessions within a narrow trading range. Prices are being held in check by resistance at 415 and support near 410 in the December contract. A potential bearish flag formation is developing on the chart; if prices break below this level, a test of the 400 price level could be possible.
• As fresh supplies of harvested corn are moving down the supply chain, the strong basis bid at the Gulf of Mexico has begun to soften, trending lower than last week.
• A possible new streak of export sales started today with an announced flash sale of corn. Unknown destinations purchased 273,048 mt (10.7 mb) of corn for the current marketing year.
• Weekly ethanol production remains strong. For the week ending October 25, it averaged 1.082 million barrels. This was up 0.1% from last week and up 2.9% from last year. Total corn used for ethanol production last week was estimated at 109.17 million bushels, which is ahead of the pace needed to reach the USDA marketing year target.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher, breaking a 4-day losing streak as First Notice Day approaches tomorrow and crude oil recovers from its recent sell-off. The fundamental picture remains mostly bearish with ongoing harvests and improved Brazilian weather, but flash sales this morning provided support. Soybean meal closed slightly lower, while soybean oil finished higher.
• This morning, the USDA reported a private export sale of 132,000 metric tons of soybeans for delivery to China during the 24/25 marketing year. They also reported a sale totaling 132,000 metric tons of soybeans for delivery to unknown destinations for 24/25. Export demand for grains has been active ahead of the US election.
• This week’s export inspections were strong for soybeans, and estimates for tomorrow’s export sales report are also expected to be impressive at 69.8 million bushels. While slightly below the previous week if realized, this figure demonstrates an overall improvement in export demand.
• In Brazil, soybean exports are expected to reach 4.58 mmt for October. Weather conditions have become significantly more favorable for planting, allowing progress to catch up quickly from earlier delays. Estimates for total production are as high as 169 mmt.

WHEAT HIGHLIGHTS:

• All three US wheat classes traded on both sides of unchanged but still posted small gains for the day. The US Dollar Index was modestly lower at the grain close, easing pressure on wheat prices, though a lower close across the board for Matif contracts offered no support. Additionally, storms moving across the Midwest and parts of the southern Plains may have limited any upward price movement due to the potential for improved crop conditions.
• SovEcon is reported to have decreased its estimate of Russian 24/25 wheat exports by 1.7 mmt to 45.9 mmt, reportedly due to intervention by Russia’s agriculture ministry. For reference, the USDA currently projects Russian wheat exports at 48 mmt (as of the latest WASDE report).
• According to the European Commission, EU soft wheat exports declined 33% year over year as of October 25. Since the season began on July 1, exports have reached 7.26 mmt, compared to 10.9 mmt for the same period last year.
• As reported by Interfax, railway operator Rusagrotrans anticipates that Russia’s October wheat exports will reach 5.9 mmt, setting an October record and surpassing last year’s 5.12 mmt. Additionally, they estimate exports for July through October to also be a record at 20.8 mmt and expect November exports to exceed last year’s levels.
• Daily stochastics for all three wheat classes indicate that their respective December contracts are technically oversold. Furthermore, each shows a potential crossover buy signal in this territory, suggesting that wheat may have found a near-term bottom and could see a larger correction to the upside.

DAIRY HIGHLIGHTS:

• December Class III milk futures lost another 27 cents closing at $19.67.
• Spot cheese continued its upward trend, gaining 1.5 cents to close at $1.9075/lb. While spot whey remained unchanged at $0.6050/lb.
• Spot butter experienced an increase, gaining 1.5 cents to close at $2.7050/lb. Additionally, powder also saw gains, closing up 0.25 cents at $1.3850/lb.
• Class IV milk was able to see some gains today with December up 4 cents to close at $21.20.
• October Class III futures settled at $22.85 while the October Class IV futures settled at $20.90.

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Author

Amanda Brill