The corn market is fractionally lower at midday as it remains rangebound following Monday’s rally, pulled between solid demand and prospects of large South American production.
Export sales remain a prominent feature in the market. The USDA reported export sales of 1.495 mmt for the week ending November 14, which pushed commitments 39% above last year, compared to USDA’s 1% projected increase.
Argentina’s corn crop is 39.4% planted, up slightly as farmers prioritize soybeans, according to the Buenos Aires Grain Exchange.
Expectations of sizable South American crops remain, as weather in Brazil has turned more seasonal, promoting favorable crop conditions and alleviated concerns of a potentially late planted safrinha crop.
Soybeans are trading mixed at midday, dragged down by lower soybean oil, while meal trades higher.
Weakness in the world veg oil markets, which saw Malaysian palm oil down 2.7% overnight, continues to weigh on the soybean oil market, which is down 64 points at midday in the January contract.
South American weather remains largely favorable for crop development and planting progress. Argentina’s Buenos Aires Grain Exchange reported that 35.8% of the soybean crop is planted, up from 20.1% last week.
The International Grains Council reduced its estimate of global soybean stocks for the 24/25 season of 82 mmt, from its previous estimate of 86 mmt.
The wheat complex is lower across the board and trading near session lows following earlier back and forth trade as traders begin to take profits and square positions ahead of the weekend.
The International Grains Council estimates global grain stocks for the 24/25 season at a 10-year low. The agency projects world wheat stocks dropping from previous estimates of 266 mmt down to 263 mmt.
Western Australia is seen to be on track for a larger than expected wheat crop. The Grain Industry Association of Western Australia estimates the regions wheat crop at 10.33 mmt for the 24/25 season, roughly 1 mmt more than estimated in September.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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