Corn is trading higher this morning but remains relatively rangebound. Yesterday, corn ended the day lower and was likely pulled down by sharply lower soybean prices. Exports have been firm, and yesterday’s export sales report showed another week of impressive sales.
Yesterday’s export sales report showed sales at 58.8 million bushels which was on the high end of trade expectations. Mexico was the top buyer followed by unknown destinations and then Japan.
As of November 12, funds were estimated to have been long 109,989 contracts of corn. Since November 15, funds are estimated to have added an additional 18,000 contracts to their long position.
Soybeans are trading slightly higher this morning as prices recover from yesterday’s sell-off, but they did make a new contract low in March overnight. Soybean oil is lower and continues to pressure soybeans while soybean meal is higher.
Yesterday’s export sales report showed soybean sales at 68.3 million bushels which was at the high end of trade expectations. China was the top buyer with Mexico and then the Netherlands following.
The US share of soybean exports to China were down 13% year-over-year in the Jan-Oct timeframe. China continues to be a large buyer of South American supplies as the possibility of US tariffs loom.
Wheat is mixed this morning with the Chicago contract trading slightly lower while KC and Minneapolis wheat trade higher. There have been reports that Russian farmers have planted less wheat this year as a result of the escalation with Ukraine and lower cash prices.
The gains in wheat futures could remain limited to an extent due to the improved weather in the HRW belt. Recent rains in the area have supported improving crop conditions.
Yesterday’s export sales report saw wheat sales towards the high end of trade estimates and well above last week’s sales. The top buyer was South Korea followed by Mexico and Indonesia.
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