The corn market continues to struggle at midday as sellers maintain control with a lack of fresh bullish news and harvest beginning to ramp up.
There have been no reported large private export sales by the USDA this week, which may put a damper on next week’s weekly Export Sales report. Though China remains absent from the US corn export market as of late, yesterday the USDA reported 33.36 mb of corn sold as of September 12, which was in line with expectations and higher than the previous week.
Mississippi River levels continue to be a concern with barge traffic running with restricted payloads and tow sizes, which is pressuring basis levels. While the Midwest is seeing some rain move through the region, more will be needed to restore river levels.
Soybean prices tumbled, along with meal earlier this morning despite a flash sale to China. They are now trading at the lower end of their range after giving up overnight gains, as the market continues to trend sideways.
The USDA reported private export sales totaling 121,000 mt of soybeans for delivery during the 24/25 marketing year to China. This marks just the second reported flash sale for the week, following a previous 132,000 mt sale of soybeans to unknown destinations on Monday.
According to an executive at Agrovet in India, the country’s palm oil production is expected to increase 3 fold in the next 6 years as oil palm plantations increase and become mature for harvest. This is expected to allow India to reduce its reliance on imported palm oil and could affect bean oil prices long term.
Just as the Mississippi River is dealing with low water levels due to dry weather, the Amazon River basin in South America is experiencing similar conditions, limiting grain loads and potentially slowing exports.
A generally quiet news day for the ag markets has the wheat complex trading mixed at midday as the December contracts across all three classes hold support near yesterday’s lows.
The prolonged drought in Argentina is prompting some farmers to abandon some wheat fields in the north and west agricultural regions. Meanwhile, in the eastern areas, it’s been noted that about 80% of the wheat crop is in normal to excellent condition.
In Western Australia, the Grain Industry Association of Western Australia reduced its estimate of the region’s wheat production by 7% from last month to 9.3 million metric tons due to dry weather. Australia as a whole is expected to produce 31.8 mmt, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
