CORN HIGHLIGHTS:

• Ongoing pressure in the wheat market limited the rally potential in the corn market to end the week. December corn lost 1 ½ cents to 427 ¼, while March slipped 1 cent to 442.  For the week, December corn was down 4 ¼ cents on the week.
• The corn market remains in a consolidation phase, with December futures trading around the 430 level for ten consecutive sessions. Despite the lower weekly close, prices stayed within last week’s trading range, suggesting continued range-bound action.
• Despite a wet start to Argentina corn planting, the Argentina corn planting is 38% complete, up 4% from last week and 4% ahead of last year.  Forecasts are looking to turn drier, which should help planting progress.
• Looking ahead, the USDA will release its November Crop Production and WASDE reports on November 14, marking the first update since September due to the government shutdown. Traders are anticipating potential volatility around the release.
• Cash corn basis levels are firming in several regions, reflecting slow farmer selling and steady demand from both the export and ethanol sectors for newly harvested supplies.

SOYBEAN HIGHLIGHTS:

• Soybeans were higher to finish the day, taking back a portion of yesterday’s losses with support from more positive trade news. November was up 10 cents to $10.01-3/4 while March was up 8-1/4 cents to $11.25-3/4. December soybean meal gained $4.40 to $317.10 and December soybean oil gained 0.33 cents to 49.68 cents.
• Support came from reports that China will reinstate three U.S. firms’ eligibility to export soybeans to China and lift its suspension on U.S. log imports effective November 10. China has remained an active buyer of U.S. soybeans since the recent Trump–Xi meeting and has pledged to purchase an additional 12 MMT this year.
• The Argentina oilseed workers and crushing companies reached a wage agreement to avoid a potential strike.  The soybean meal market triggered some profit taking as plants in the world’s largest exporter of soybean meal will stay in operation.
• For the week, November soybeans gained 2 cents backing off 20 cents from Monday’s high. March soybeans gained 2 cents on the week as well, December soybean meal lost $4.50 hitting resistance at the 100-day moving average, and December soybean oil gained 1.00 cent to 49.68 cents.

WHEAT HIGHLIGHTS:

• Wheat closed with continued pressure for the winter contracts, but spring wheat again held up much better. December Chicago lost 7-3/4 cents to 527-3/4, Kansas City was down 3 cents at 519-1/4, and MIAX gained 1 cent to 558. With Argentine wheat offers said to currently be the world’s cheapest, this is likely weighing on the U.S. market.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat harvest is now 11.6% complete, up 3.2% from the week before. Additionally, the BAGE kept their wheat production estimate unchanged at 22 mmt despite potential freeze damage earlier this month. For reference the USDA is forecasting Argentina’s crop at 19.5 mmt.
• FranceAgriMer has reported that the French soft wheat crop is 79% planted as of Monday, up 11% from the week before. This is also well above the 59% pace last year and the fiver year average of 74%.
• The Russian export duty on wheat has fallen about 55% to 76 Rubles/mt for the period of November 7-11. Corn and barley export taxes remain at zero. This may be an effort to stimulate export sales. Russia’s floating duties on grain exports began in June of 2021, with funds used to subsidize producers.
• Over the past week, the Black Sea region has seen slightly above normal temperatures along with a drier than normal pattern. This may accelerate winter wheat planting in Ukraine and Turkey. Through the next 15 days, however, these areas may see isolated showers which could cause wheat planting delays as time progresses.

DAIRY HIGHLIGHTS:

• Class III futures were steady to slightly higher to end the week. November futures improved just a penny to $17.20 while the December contract added 2 cents to close at $16.98.
• Class III products were quiet on the day with both the spot price for cheese and whey holding steady at $1.68/lb and $0.71/lb respectively.
• Nearby Class IV contracts were seen improving slightly while sellers were seen pressuring deferred contracts lower. December futures added 3 cents to close at $13.75.
• Spot butter was little moved on the day, improving just 0.25 cents to close at $1.4750/lb. Powder gained 0.75 cents to close out the week at $1.1450/lb.

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Author

Amanda Brill