The corn market has reversed off its overnight and early morning lows to trade mostly higher as it garners strength from neighboring wheat to follow through on Friday’s gains, with little fresh news to trade.
Basis continue to be firm as domestic and export demand outpace farmer selling. The firm demand is also helping press the December/March corn spread to its tightest levels since June.
Friday’s Commitment of Traders report indicated that managed funds bought a net 87,946 corn futures contracts in the week ending November 12. This brought their net long position to nearly 110,000 contracts.
Soybeans have firmed at midday, trading off the lows as buying entered the market following the report of fresh export sales. Soybean meal has also firmed, while bean oil remains weak.
This morning the USDA reported fresh export sales of soybeans, meal, and oil for delivery during the 24/25 marketing year. Private exporters sold 261,264 mt of soybeans to Mexico, 135,000 mt of soybean cake and meal to the Philippines, and 30,000 mt of bean oil to India.
It’s been reported that China is expected to cut its export tax rebate on used cooking oil, which could curb some US imports of the product to produce biofuel.
AgRural reported that Brazil’s 24/25 soybean crop is 80% planted as of last Thursday. This is up from 67% the previous year, and 68% last year.
The wheat complex is trading near session highs across all three classes after gapping higher on the market’s open Sunday night on news that the US will allow Ukraine to use long range missiles in its war with Russia.
Friday’s Commitment of Traders report showed that managed funds sold a net 14,526 contracts of Chicago wheat in the week ending November 12, which brought their total net short position in Chicago wheat to 45,307 contracts.
While much needed rain is moving across much of the winter wheat areas, any bearish affect the rain may be having on the markets appears to be largely offset by the potential escalation of the Russia/Ukraine war.
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