Despite the report of another flash sale by the USDA, the corn market is trading lower at midday, weighed down by lower wheat and soybeans and potential pre-hedging by grain buyers ahead of this weekend’s harvest activity.
The USDA reported another flash export sale this morning, showing that private exporters sold 136,000 metric tons of corn to Mexico for the 24/25 marketing year.
The US corn area in drought jumped 14% in this week’s updated Drought Monitor to 76% as the Midwest has seen very little rainfall. By comparison, the corn area experiencing drought one month ago was just 25%.
A system of showers moved through the Midwest Thursday and Friday. While some areas experienced heavier amounts, the overall totals will likely not be enough to build moisture levels or disrupt harvest activity in too many areas.
The soybean market is trading lower at midday on technical selling following yesterday’s bearish reversal in the November contract, and weakness in both soybean meal and oil.
This morning the USDA reported a round of private export sales of soybeans totaling 116,000 metric tons for delivery to China for the 24/25 marketing year.
Drought has increased across the US. According to this week’s Drought Monitor the soybean area experiencing drought has reached 68%, a 14% increase from last week, and is 38% higher than a month ago.
Low water levels on the Mississippi River are restricting grain flows to the Gulf, which is driving basis levels higher amid increased export demand. Meanwhile, interior basis levels remain firm at many processors, where profitable crush margins keep facilities focused on replenishing supplies.
The wheat complex is trading lower across all three classes of wheat as December Chicago and KC break below their 50-day moving averages, and KC makes fresh lows for the week.
FranceAgriMer reported that France’s winter wheat planting pace is behind schedule, with 21% of the crop planted as of Monday, October 21, well behind the 5-year average of 47%.
The Turkish statistics office released its updated estimate of the country’s wheat crop, dropping it 5.5% to 20.8 million metric tons.
The percentage of winter wheat areas affected by drought has risen from 52% last week to 58%, as many regions continue to experience low rainfall. By comparison, 49% of winter wheat areas were affected by drought at this time last year.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
