Corn is trading slightly higher this morning as prices attempt to recover some of yesterday’s losses. Corn prices have remained in a relatively tight range all month.
Talk of a 25% tariff by President elect Trump sent corn prices lower, albeit on low volume, yesterday. Mexico has purchased over 500 million bushels of US corn so far this marketing year accounting for 41% of the US corn export total.
South Africa’s Department of Agriculture last week gave the go ahead for US corn imports after drought and dryness cut their corn production by 22%. South Africa has been virtually nonexistent buying US corn over the last 30 years. This could bolster an already strong 2024/25 US corn export book.
Soybeans are trading higher this morning as prices continue to hover just above contact lows. Soybean meal is about unchanged this morning while soybean oil is slightly lower to start the day.
Weather for much of Brazil and Argentina looks supportive to soybean development as we flip the calendar over to December. Recent rains have alleviated dryness worries in Argentina while a continued mix of rain and sun has been ideal for much of northern Brazil.
Recent increased tariff talk by President elect Trump has done little to effect the already beaten up US soybean futures as of late. Traders seem content to hold near these prices while continuing to monitor South American weather.
Winter wheat futures are trading lower this morning after yesterdays slight close higher in prices. Spring wheat futures are holding onto a fractional gain this morning. Strong winter wheat conditions going into winter dormancy in the US continue to weigh on wheat futures.
After a very strong last two months the US Dollar index has backed off this week after running into upside resistance.
European Union soft wheat exports as of November 24th have reached 9.15 mmt, down 30% from a year ago.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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