CORN HIGHLIGHTS:

• Corn futures extended losses after Wednesday’s reversal, pressured by weak overnight trade and disappointing weekly export sales.
• Weekly US corn export sales totaled 946,400 mt (37.3 mb) for the week ending December 5, down 45% from last week and 32% from the 4-week average. Colombia was the top buyer, with total sales 29% ahead of last year.
• CONAB projected Brazil’s 24/25 corn crop at 119.6 mmt, down 200,000 mt from November but still a record if realized.
• Higher US corn prices and a stronger dollar have boosted the competitiveness of Brazilian, Argentinian, and Ukrainian corn, limiting US export demand. Flash sales have been sparse since mid-November, reflecting increased global competition.
• Narrow corn spreads widened on Thursday, with deferred contracts (May, July, and September) needing strength to incentivize producers to hold grain into the second half of the marketing year.

SOYBEAN HIGHLIGHTS:

• Soybeans closed slightly higher despite weak export sales and have traded within a tight, minor upward range over the past month. Soybean meal fell, while soybean oil gained.
• Private exporters reported 334,000 mt of soybean sales to unknown destinations for 24/25, but flash sales have slowed as Brazilian offers grow more competitive.
• Weekly export sales totaled 43.1 mb for 24/25, below trade expectations, while shipments of 68.3 mb exceeded the 26.7 mb weekly pace needed to meet USDA estimates. Key destinations included China, Spain, and Mexico.
• Strong exports have kept soybean prices above $10, while anticipation of a large South American crop has capped gains. Prices may shift with a drop in USDA’s US production estimates or on any Brazilian weather issues.

WHEAT HIGHLIGHTS:

• Wheat closed lower across all classes, pressured by weaker Paris milling wheat, a stronger US dollar, and spillover from corn.
• Weekly wheat export sales rose 10.7 mb for 24/25, but shipments of 7.3 mb fell short of the 17.2 mb weekly pace needed to meet the USDA’s 850 mb export target. Commitments total 582 mb, up 9% from last year.
• CONAB trimmed Brazil’s wheat production estimate from 8.11 mmt to 8.06 mmt, aligning with the USDA. Meanwhile, the Rosario Grain Exchange raised Argentina’s estimate to 19.3 mmt, above the USDA’s 17.5 mmt, citing better-than-expected yields.
• India halved wheat stockpile limits for traders and retailers, aiming to control prices and ensure availability. Limits dropped to 1,000 tons for traders and 5 tons for retailers, effective through March.
• High export demand may push Ukraine’s wheat prices $20-$25 per tonne from December to January. Contracts for December reached 1.1 mmt, with 9.13 mmt already exported this season toward a 16.2 mmt limit.

DAIRY HIGHLIGHTS:

• Class III futures had a great day today with the second month contract popping back over $20.00, closing 73 cents higher.
• Milk prices were green this morning but then were propelled by a 4.625 cent gain in spot cheese and a 1.75 cents gain in spot whey.
• Class IV milk futures were much quieter but did see the January contract close 8 cents higher at $20.83.
• Both Class IV products were down with butter giving back a quarter cent and powder losing a half a penny.

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Author

Amanda Brill