CORN HIGHLIGHTS:

• Corn futures finished the session slightly higher as prices consolidated for the fifth consecutive session. Announced export sales and a strong crude oil market helped support corn futures on the day.  For the week, corn futures managed to trade slightly lower, losing ¾ of a cent in a quiet week with a less than 6 cent trading range from high to low.
• Mexico stepped in the US corn export market with a relatively large purchase. The USDA announced that Mexico purchased 781,322 mt of corn. The sales were split, with 715,800 mt for this marketing year and 65,532 mt for next year.
• Corn export sales have remained strong for the first part of the marketing year. Total corn sales commitments for the 24/25 marketing year have reached 1.016 billion bushel in 24/25 and are up 41% from a year ago. This is ahead of the USDA’s projected pace, and the USDA may need to adjust the demand side of the corn balance sheet in future USDA reports.
• As harvest wraps up, November can historically be a challenging month for corn prices, as producers often need to set prices on remaining bushels. With First Notice Day for the December contract approaching on November 29, producers holding basis contracts or storing commercial bushels will need to make pricing decisions beforehand, which often puts pressure on market prices.
• The US presidential election on Tuesday, November 5, could bring volatility to the corn market as it positions itself for election results. Additionally, the November WASDE report, with the next round of crop production estimates for the current marketing year, is set for release on Friday, November 8.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day slightly lower after mixed trade. Prices were initially higher overnight and this morning before fading toward the close, dragged down by falling soybean meal. Early support came from large export sales, while soybean oil continued its trend with a higher close today.
• This morning, the USDA reported multiple private export flash sales. 132,000 metric tons of soybeans were reported for delivery to China for the 24/25 marketing year. Another 198,000 metric tons were sold for delivery to unknown destinations for the 24/25 marketing year, and 30,000 metric tons of soybean oil was sold for delivery to India for 24/25.
• For the week, November soybeans lost 5 ¼ cents to 982 ½ while March soybeans lost just ¾ cent to 1008 ¼. December meal lost $10.50 to $295.30, making new contract lows while soybean oil gained 2.15 cents to 46.30 cents.
• Higher palm oil prices have been the main driver for soybeans and soybean oil recently as energy prices have rebounded. This supports renewable diesel production and has helped world veg oil prices. The downside of this has been that the increase in crush has created an excess of soybean meal.

WHEAT HIGHLIGHTS:

• After a day of two-sided trade, wheat posted small losses across all three classes. In addition to a sharp rebound in the US Dollar Index today, another lower close for Matif wheat also pressured the complex. Furthermore, widespread rain coverage is expected over the weekend for key US wheat-growing areas, which should help improve conditions.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat harvest is now 7.7% complete as of October 31. Additionally, the exchange left their production estimate unchanged at 18.6 mmt, which would exceed last year’s 15.1 mmt wheat crop.
• In a report from the European Commission, the estimate for total EU grain production in 24/25 has been reduced from 260.9 mmt to 255.6 mmt. Corn and soft wheat production saw the largest declines, with the latter dropping from 114.6 mmt to 112.6 mmt. Durum wheat production, however, remains unchanged at 7.2 mmt.
• In June, Turkey implemented a four-month halt on wheat imports. Last month, millers were advised they could import only 15 tons for every 85 tons purchased from the Turkish grain board. However, according to a report by the USDA FAS attaché, Turkey’s import restrictions are likely to continue through year-end, as they work to reduce an overabundance of domestic wheat.

DAIRY HIGHLIGHTS:

• Class III futures were able to bounce back after yesterday’s losses on some profit taking heading into the weekend. December futures gained 22 cents, closing at $19.68.
• Spot cheese improved just 0.25 cents on Friday to $1.8525/lb. This was minimal after yesterday’s large loss but was still able to offer support to the Class III market. Whey was unchanged at $0.6050/lb.
• Remaining 2024 Class IV contracts were quiet with no trading volume while 2025 contracts were mixed.
• Spot butter was lower again today, dropping 3.75 cents to close at $2.67/lb. Powder was unchanged at $1.3775/lb.

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Author

John Heinberg