CORN HIGHLIGHTS:

• Corn futures traded lower on the session to start the month of December. Pressure in the wheat and soybean markets limited corn’s upside potential despite maintaining a strong demand tone. December lost 2 ¾ cents to 432 ¾, while March also lost 2 ¾ to 445.
• Corn export inspections for the week ending totaled 1.421 MMT (56 mb). This total was above the high end of expectations. Total inspections for the marketing year have reached 747 mb, or 71% above last year as corn exports are off to a potential record pace.
• USDA released the export sales totals for October 23 as the USDA is trying to catch up since the government shutdown. For the week ending October 23, corn export sales were 1.805 MMt (71.1 mb). Corn export sales are running nearly 400 mb ahead of last year’s pace.
• The US Dollar index has traded softer for 4 of the last 5 sessions. The Dollar index was testing support levels during the session, but further weakness should help support the grain markets.
• Brazil weather has been variable, but overall supportive of grain development for the corn and soybean crops planted this season.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower, breaking a streak of three higher closes last week. On the chart, January soybeans have been hugging the 21-day moving average for the past week. January futures were down 9-3/4 cents to $11.28, and March was down 8 cents to $11.38. January soybean meal was down $3.30 to $311.10 and January soybean oil was up 0.30 cents to 52.06 cents.
• Some pressure today may have come from favorable South American weather. There had previously been concerns over spotty rainfall in Brazil, but heavy rains have fallen in both central and northern Brazil improving soil moisture levels. Argentinian weather has been favorable as well.
• Today’s export inspections for soybeans were within analyst estimates at 33.8 million bushels for the week ending November 27. Notably, this is the first report where Chinese purchases have shown up, and those totaled 784,000 mt. Total inspections for 25/26 are now at 436 mb which is down 46% from the previous year. Inspections are running behind USDA estimates.
• China has resumed buying U.S. soybeans, wheat, and sorghum in the wake of the trade truce, but questions remain over whether it will reach the 12-million-metric-ton soybean purchase target referenced by some U.S. officials. Beijing has not publicly confirmed that goal.

WHEAT HIGHLIGHTS:

• Wheat closed with losses in each of the three futures classes. March Chicago lost 3-1/2 cents to 535, Kansas City was down 3/4 to 526-3/4, and MIAX closed 2 lower at 576. Initial weakness in the US Dollar was supportive, but as the dollar regained strength through the day, it put pressure back on grains. Lower corn and soybean futures also lent weakness to the wheat market.
• Weekly wheat inspections totaled 14.1 mb, bringing 25/26 inspections to 486 mb, up 20% from last year. Inspections are running above the USDA’s estimated pace; total 25/26 exports are forecasted at 900 mb, up 9% from last year.
• ABARE increased their estimate of Australian wheat production by 1.8 mmt to 35.6 mmt. This was slightly below expectations, as well as the USDA’s 36 mmt projection. However, if the ABARE estimate is correct, it would be 4% above last year and also Australia’s third biggest crop on record.
• Ukrainian grain and legume exports this season are down 32% year over year, according to their agriculture ministry. As of November 28, wheat shipments are down 17% year over year at 7.3 mmt.

DAIRY HIGHLIGHTS:

• Class III milk futures were mixed on the day with first quarter contracts seeing slight improvements while second quarter contracts were seen falling.
• Spot cheese has been the recent victim of heavy selling pressure, trading 4.50 cents lower to $1.48125/lb today. Whey was unchanged at $0.7325/lb.
• Class IV milk futures were pulled down by a lower spot session for its products. The September contract saw the largest loss of 19 cents to close at $15.67.
• Spot butter lost half a cent to start the week, closing at $1.4450/lb. Powder lost 0.25 cents to go home at $1.14/lb.

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Author

Brandon Doherty