Grains and oilseeds are mixed on Friday following the overnight session. The federal government remains in a partial shutdown for a third day. The U.S. dollar is lower. Crude oil is higher following recent losses. Stock futures are steady to higher.
CORN
December corn is down 0.75 cents at $4.21. March corn is down 1 cent at $4.37.
Buying continued in corn futures on Thursday following Wednesday’s strong rally off intraday lows. December prices traded 5.25 cents higher, fully reversing this week’s selloff. Yesterday’s gains brought some new buyers with higher open interest on the day.
Prices could still struggle at $4.30, which has proved to be a difficult level, as the area served as major support since last year.
California approved sales of E15 this week, which is expected to help increase ethanol demand as drivers seek lower-priced fuel options.
The Buenos Aires Grain Exchange reported that the Argentine corn planting reached 19.8 percent complete, which was seven percentage points ahead of last year’s pace. Moisture conditions have been good, as the country is expected to produce a record crop.
SOYBEANS
November soybeans are down 0.25 cents at $10.23 ½. January soybeans are unchanged at $10.41 ¾. Soybean oil is moderately lower. Soybean meal is higher.
Futures received follow-through buying on Thursday following the Trump-driven rally on optimism of the president discussing soybeans with China. The recent rally has likely been driven by speculative short-covering, as funds have been flip flopping between net long and net short.
The lack of Chinese buying remains a concern. Even if China were to begin purchasing U.S. soybeans, we already lost out on the prime export window when the U.S. typically ships bushels to the country.
The partial government shutdown impacting USDA reporting has the market on edge, especially during recent headline volatility. When export reports start back up, volatility may pick up as the market digests numbers.
WHEAT
December Chicago wheat is up 2.50 cents at $5.17 ¼. KC wheat is up 2 cents at $5.01. Spring wheat is up 0.50 cents at $5.61.
Futures traded higher for a third session, continuing their recovery from Wednesday’s contract lows. Prices still haven’t reversed weekly losses, as supplies remain adequate for demand.
Managed money holds a fairly large net short position, and prices have a little ways to go before funds may have to begin covering shorts.
The United Nations Food and Agriculture Organization reported that global wheat stockpiles for the 2025/26 season is estimated at 320.3 MMT, up 2.4 MMT from the opening levels due to large harvests from Canada and Russia.
The Buenos Aires Grain Exchange reported that the average wheat yield in the country is nearing historic highs following abundant soil moisture during the growing season. Ninety-seven percent of the crop is in normal to excellent condition. The country is expected to harvest 22 MMT of wheat this season.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.