CORN HIGHLIGHTS:

• General selling pressure in the grain markets weighed on corn futures on Thursday. Double-digit losses in the soybean market and renewed strength in the U.S. dollar limited gains in the corn market.
• The U.S. dollar pushed to new highs for the move today as the value of the dollar broke out of its recent consolidation pattern to the upside. A strong dollar limits the competitiveness of U.S. corn on the export market.
• The USDA announced weekly exports sales on Thursday morning. Last week, exporters posted 1.494 MMT (58.8 mb) of new corn sales for the current marketing year. This total was within market expectations, Mexico remained the top buyer of U.S. corn last week.
• Weak energy prices and rising corn costs have pushed most ethanol plant margins negative. While demand exceeds expectations, prolonged margin pressure could curb corn usage for ethanol.
• The corn market may see an increase in volatility going into the weekend and Thanksgiving Day holiday. December options expire on Friday and First Notice Day nears next week, which could bring an increase in activity and money flow.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower for the third consecutive day causing the March contract and beyond to post new contract lows. The move came despite solid export sales and a slew of flash sales. Prices were driven lower by lower soybean oil and continued good weather in South America. Soybean oil ended the day lower as well.
• Today’s export sales report showed soybean export sales totaling 68 million bushels which was above the average trade guess. This brought year-to-date commitments to 1.161 billion which is up 9% from YA compared to the USDA estimate of 8%.
• This morning, private exporters reported multiple soybean flash sales. 198,000 metric tons of soybeans were reported for delivery to China during the 24/25 marketing year, 135,000 metric tons were reported for delivery to unknown destinations, and 133,000 metric tons of soybean cake and meal were reported for delivery to the Philippines during the 24/25 marketing year.
• Rumors of China’s interest in U.S. soybeans circulated last night, with Sino Grain actively buying February shipments. This may have been the flash sale seen this morning, but it could also indicate that China is looking to make additional soybean purchases from the U.S.

WHEAT HIGHLIGHTS:

• Wheat faded from overnight highs despite rising Black Sea tensions and higher Matif wheat, with December contracts facing resistance near their 20-day moving averages. A stronger U.S. dollar hitting 13-month highs likely added pressure.
• Weekly export sales for wheat came in at a four-month high of 20 mb for the 24/25 marketing year. Year-to-date commitments are now 544 mb, up 23% from last year and in line with historical averages.
• This week’s updated Drought Monitor showed 40% of the winter wheat areas are experiencing drought, down from 43% last week, and 41% last year, as recent rain has helped improve conditions.
• Escalating Russia-Ukraine tensions, including reports of a Russian ICBM strike, continue to influence wheat. The recent rally appears driven by less bullish short covering, not fresh buying, as volume and open interest have declined.

DAIRY HIGHLIGHTS:

• Class III milk futures were down hard today with the December contract falling 47 cents to $18.68.
• Spot cheese had a rough day as well, falling 4.625 cents to close at $1.68125/lb. Spot whey, however, pushed up to $0.6475/lb.
• The December through March Class IV futures were under moderate to strong pressure today as well. December fell 12 cents to $20.64.
• The spot butter trade saw just a quarter-cent drop, but that makes the weekly total losses 8.25 cents so far. Powder fell 2 cents to $1.38/lb.

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Author

John Heinberg