CORN

• Corn is lower at midday trade; December is 3 cents lower at 4.48-1/4, and March corn is down 2-3/4 cents at 4.62.
• An active weather pattern is expected across U.S. crop areas through mid-next week, likely causing some harvest delays, while temperatures remain above normal.
• Planting remains slow in southern Brazil, though no significant crop concerns have emerged. Argentina is 47.3% planted, with generally favorable conditions.
• Harvest pressure may be nearing its peak, while inflationary concerns and the potential for higher interest rates are increasing grain storage costs. This may be encouraging farmers to sell more grain directly out of the field than usual.

SOYBEANS

• Soybeans are higher at midday, with November soybeans up 3 cents at 12.22-1/2 and January soybeans up 1 cent at 12.36. Soybean oil is also up at midday, as soybean meal is lower.
• Limited Chinese demand has pressured the market this week, with only one flash sale of roughly two cargoes early in the week. Traders are concerned that a weaker Brazilian currency is improving Brazil’s export competitiveness, potentially prompting China to shift back toward South American supplies in the near future.
• Excessive rainfall across southern and southeastern Brazil is slowing planting, though producers still have time to get crops in between rain events. Planting in Argentina has just begun, with 2.3% completed so far.
• The EU is considering stricter pesticide regulations for soybean imports, which could increase production costs for U.S. farmers if adopted.

WHEAT

• Wheat prices are lower at midday despite reports that China is inquiring about U.S. SRW wheat for delivery early next year. Chicago December wheat is down 3 cents at 6.00-3/4, and December Kansas City wheat is down 4-1/2 cents at 6.40-3/4.
• The current U.S. balance sheet does not account for any Chinese purchases, meaning significant export demand from China would reduce projected ending stocks.
• Argentina’s harvest is approximately 6.7% complete, with early reports indicating favorable yields.
• Russia’s winter grain planting has caught up and is now only 1% behind last year’s pace. French soft wheat planting is 62% complete, ahead of the 59% average.

Author

Lauren VandenLangenberg