CORN HIGHLIGHTS:

• Corn market traded lower on Wednesday as a stronger US dollar, and favorable harvest weather pressured the grain market. December corn futures tested and held the 500 psychological level, but lost 6 cents to 502, and March futures lost 5 ¼ cents to 517.
• The 30-Year Treasury Note hit its highest interest rate in more than 24 years on Wednesday, which helped support the US dollar index to challenge its recent highs. The combination seemed to pressure most commodity and equity markets during the session.
• The improved weather forecast for this week should push the corn harvest. The movement of fresh corn supplies into the pipeline will likely limit near-term rallies. Yield results have a lot of variability given the issues with this year’s weather forecasts.
• The USDA will release the October Crop production report on Friday morning. Expectations are for the USDA to lower corn yield to 177.7 bu/acre, down from 178.5 bu/acre last month.
• Weekly ethanol production rose 4.6% to 1.053 MB/day for the week ending October 2. This total was above expectations and supportive for near-term corn demand.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower following large gains yesterday but were able to take out yesterday’s high earlier in the day. Pressure came from lower soybean oil, a jump in the US dollar, and concerns over higher interest rates. Bullish factors going forward could be excess moisture, continued strong export sales to China, and a decline in yield in this months’ WASDE report.
• November soybeans lost 5-1/2 cents to $12.97-1/2 and met some technical resistance at the 21-day moving average while March lost 4-3/4 cents to $13.24. December soybean meal was strong today gaining $11.00 to $365.80 while December soybean oil lost 2.23 cents to 67.68 cents. December crude oil is down 85 cents to $87.58 a barrel.
• The super El Nino is expected to majorly impact palm oil production for the next two years according to analyst Thomas Mielke who is the executive director of Oil World. Global output is expected to fall by 2 million tons next year but could be larger than that. He has also said that world production growth of oils and fats is struggling to keep up with world demand.
• Estimates for Friday’s WASDE report see US soybean ending stocks for the 26/27 crop virtually unchanged at 309 million bushels from 310 million bushels from a month ago. Harvested area is estimated to be unchanged at 85.9 million while yield is expected to rise by 0.1 bpa to 52.9 bpa which would slightly increase production.

WHEAT HIGHLIGHTS:

• All three wheat futures classes posted bearish reversals alongside Paris milling wheat futures. Today’s trade was likely influenced by the US Dollar regaining all of yesterday’s losses, and then some. Bond yields have hit a 24 year high, which has caused concerns about additional interest rate increases in the future. In the December contract, Chicago lost 17-3/4 cents to 686-1/2, Kansas City fell 17-3/4 cents to 738-1/2, and MIAX dropped 9-1/2 cents to 710-1/4.
• According to IKAR, Russian exports through the Baltic region in September reached 1.4 mmt. Additionally, they expect this could increase to 1.8 mmt in October. Total Russian wheat shipments in September came in at 2.5 mmt, and that is forecasted to increase to 3.0 mmt in October.
• Cool and dry conditions were seen in the Canadian prairies over the past week. However, the 15 day outlook calls for wetter weather. This may cause delays in harvesting of both wheat and rapeseed.
• Taiwan has issued a tender for 105,800 mt of milling wheat to be sourced from the US. The deadline for offers is today, October 7. Additionally, Jordan has issued an international tender for up to 120,000 mt of milling wheat to be sourced from optional origins. Thailand is also said to be tendering for 60,000 mt of animal feed wheat.

DAIRY HIGHLIGHTS:

• November Class III futures gained 15 cents today, settling at $15.84.
• Spot cheese gained 0.25 cents to close at $1.39625/lb., while spot whey gained 1.50 cents to close at $0.850/lb.
• Class IV futures posted slight gains, with the November contract up 5 cents to close at $21.05.
• Spot butter fell 2 cents to close at $1.290/lb., while spot powder gained 0.75 cents to close at $2.2550/lb.

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Author

Amanda Brill