CORN

• Corn futures are trading slightly higher this morning to begin the week as the market continues to seek buyers following recent weakness. December corn is 2-3/4 cents higher at $4.50-1/2, while March corn is 2-3/4 cents higher at $4.63-3/4.
• Reuters reported Monday that Chinese purchases of U.S. agricultural products outside of soybeans are running at their slowest pace since 2019. China’s ample domestic corn supplies continue to limit demand for U.S. corn.
• USDA’s Crop Progress report will be released Monday afternoon, providing an update on the final stages of the U.S. corn harvest. Harvest progress and the pace of fieldwork will help indicate how quickly remaining supplies are moving into the pipeline and whether seasonal harvest pressure is beginning to ease.

SOYBEANS

• Soybean futures are trading slightly lower this morning as the market continues to face seasonal pressure. November soybeans are 3/4 cent lower at $12.21-1/2, while January soybeans are 2-1/2 cents lower at $12.31-3/4.
• Brazilian weather remains in focus as planting advances. Central Brazil has been relatively dry, although better rainfall is forecast over the next week, which could improve planting and early crop establishment.
• USDA’s Fats and Oils report will be released Monday afternoon, providing an updated look at U.S. soybean crush and soybean oil stocks. The report will offer another gauge of domestic soybean demand, with crush margins and biofuel-related soybean oil use remaining important supports for the market.

WHEAT

• The wheat complex is posting slight gains to begin the week. Looking at December contracts, Chicago wheat is 2 cents higher at $6.05-1/2, Kansas City wheat is 3-1/4 cents higher at $6.47-1/2, and Minneapolis spring wheat is 1-1/4 cents higher at $6.25.
• Wheat remains pressured by expectations for stronger Russian exports, with improving Black Sea shipment prospects adding to global supply competition. Increased Russian availability could continue to limit upside in U.S. wheat prices despite recent improvement in export demand.
• Black Sea headlines remain important after U.S. officials said Saturday that international interest is growing in a limited ceasefire aimed at protecting grain and energy shipments. Any progress toward an agreement could further reduce the geopolitical risk premium in wheat, while renewed disruptions would likely provide support.

Author

Matthew Lucas