Corn remains higher at midday, trading within a relatively tight 3 ¾ cent range, as light bull spreading supports the front months over the deferred contracts.
The corn market continues to balance solid ethanol and export demand against the potential for record global supplies in 2025, which offers resistance.
Some in the trade believe U.S. domestic and export demand is underestimated by the USDA, with potential underestimation as high as 110 mb.
Soybeans turned mostly lower at midday, as the market remains caught between solid demand and the prospect of large South American crops. Dry conditions in Argentina are supporting soybean meal, while weak demand for palm oil is dragging on soybean oil.
US lawmakers sent a letter to the EPA urging increased verification and restrictions on the import of suspected fake used cooking oil, which competes directly with US soybean oil as a biofuel feedstock.
Overall, South American weather remains favorable for soybean growth. Brazil has received good moisture, with more on the way, while Argentina has some dry areas that will need additional rain in the coming weeks to maintain good crop conditions.
The NOPA crush report, set for release later today, is expected to show a total of 196.7 million bushels — just 3 million bushels short of the October record. High crush volumes have led to excess soybean meal supplies.
The wheat complex is mostly higher led by the KC contracts though all three classes are trading off their session highs, with Chicago trading closer to session lows.
Wheat is finding support from lower production numbers in Russia and quality concerns in the EU, but World buyers are slow to buy due to their low currency values.
Russia’s State Statistics Service Rosstat, stated that the country’s grain reserves dropped 21% year-over-year as of Dec. 1, with its wheat reserves falling 24.6% to 18.7 mmt.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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