Soybeans were mixed, ending the week with steep losses. Traders are monitoring the tail end of this year’s U.S. harvest and the expanding planting pace in Argentina and Brazil. The Buenos Aires Grain Exchange says 5% of Argentina’s crop is harvested. The USDA’s next round of supply, demand, and production numbers is out November 10th, with CONAB’s updated look at Brazil set for November 13th. China bought 136,000 tons of U.S. beans ahead of the open, the fifth business day out of the last six with an announced sale. Soybean meal futures were up on technical buying, while soybean oil was mostly firm on spread trade and oversold signals after a very bearish week.
Corn was modestly higher on fund and technical buying, while still posting a week-to-week decline. Corn is watching the U.S. harvest, expecting scattered near-term delays, along with planting and development conditions in South America. The Buenos Aires Grain Exchange says over half of Argentina’s crop is planted. Unknown destinations purchased 101,000 tons of U.S. corn Friday morning. Given all the recent talk about China showing demand for non-soybean U.S. ag commodities, the eventual delivery destination will be watched very closely. However, Chinese demand is expected to be contingent on changes to tariff policy. Argentina and Ukraine currently have the edge on export prices over the U.S. and Brazil. France’s AgriMer says the corn harvest is over.
The wheat complex was lower on fund and technical selling, compounding the week’s losses. The trade’s monitoring talk about peace negotiations between Russia and Ukraine. That’s a song that has been sung before, so the trade seems to be taking a wait and see approach. Wheat is very oversold, but the upside potential is limited by slow export demand. Traders are also watching planting in Europe, Russia, and Ukraine, along with harvest activity in the Southern Hemisphere. The Buenos Aires Grain Exchange says 8% of Argentina’s crop is harvested. France’s AgriMer says 87% of the soft winter wheat crop is planted, ahead of average.
