CORN

• Corn futures remain weak in midday trading, moving lower on concerns that ongoing trade discussions between the U.S. and China will not include corn. Any mention of potential U.S. corn imports by China would be seen as a bullish surprise, especially with China’s harvest currently underway. December corn is down at 4.31 ¾.
• President Trump announced a trade deal with South Korea overnight, a key buyer of U.S. corn, providing potential support for export demand sentiment.
• Ukraine corn prices have declined this week as harvest progresses and are now below Brazilian values, though U.S. corn remains the cheapest on the global market.
• Ethanol production slipped to 321 million gallons last week, down from the previous week but still 1% above year-ago levels. Output came in below expectations, with approximately 109 million bushels of corn used in the production process.

SOYBEANS

• Soybeans continue to slip in midweek trade following a strong start to the week, as the market remains severely overbought. Soybeans and soybean oil are posting losses, while soybean meal sees minimal gains. November soybeans are trading lower at 10.77.
• Overnight reports indicated that China’s COFCO booked 180,000 tons (three cargoes) of U.S. soybeans ahead of the Trump–Xi meeting, marking the first purchase of the season. The timing was not unexpected, as China typically buys before events that could influence prices upward.
• Dr. Cordonnier raised his estimate for Brazil’s soybean production by 2 million tons to 177 million, slightly below the latest projections from CONAB and ABIOVE.
• A rain front is expected to move north into central Brazil by the weekend, bringing much-needed soil moisture that should accelerate soybean planting after recent dry conditions stalled fieldwork.

WHEAT

• Wheat futures are trading higher at midday, despite the China trade deal likely not including U.S. wheat. Over the weekend, trade agreements with other Southeast Asian nations are providing support for U.S. wheat exports. December wheat is seeing gains at 5.31 ½.
• The recent wheat rally continues to be driven primarily by short covering rather than a shift in global fundamentals. However, potential disruptions to Russian exports due to new sanctions remain a supportive factor.
• LSEG raised its Australian wheat production estimate by 2%, while Ukraine has sown 81% of its expected winter wheat area.
• In the U.S., rains have ended across the Southern Plains, and conditions are expected to dry over the next two weeks, with both the 6–10 day and 8–14 day forecasts showing below-normal precipitation.

Author

Lauren VandenLangenberg