Grains and oilseeds are lower on Friday following the overnight session. The U.S. dollar is moderately lower following this week’s surge to the highest in more than a month. Crude oil is sharply lower and pushing to fresh lows. Stock futures are slightly higher.
CORN
December corn is down 1.75 cents at $4.16 ½. March corn is down 2.25 cents at $4.31 ¾.
December futures traded 3.75 cents lower on Thursday to $4.18 ¼, the low end of their tight trading ranges. Prices broke below the range during the overnight trade, as the lack of news allowed harvest pressure to take hold.
We can assume harvest is moving along quickly, barring areas that received recent rainfall. Tight storage this harvest season could increase hedging pressure.
The EIA forecasts WTI crude oil prices to average $46 a barrel in the first quarter of next year. Sharply lower crude prices could be a perceived headwind for corn demand next year.
The Buenos Aires Grain Exchange reported that Argentina’s corn planting reached 25.6 percent complete, which was nearly the fastest pace out of the past five years. The strong planting pace encourages more corn acres, which are already expected to shift from soybeans.
SOYBEANS
November soybeans are down 9 cents at $10.13 ¼. January soybeans are down 9.25 cents at $10.29 ¼. Soybean meal is lower, and soybean meal is lower for a second session.
Futures pushed lower overnight following Thursday’s bearish close lower. November soybeans fell back below the 100-day moving average and closed 7.25 cents lower on Thursday. The product markets both moved lower, adding to the selling pressure.
There are 22 days left until the EPA’s comment period regarding the SRE reallocation closes. Additionally, the agency is slated to release its final renewable volume obligations for 2026 and 2027, though finalized RVOs never seem to appear on time.
China is reportedly slapping large fees on American vessels bound for Chinese ports ahead of key talks between President Trump and Xi. The move mirrors large fees the U.S. imposed on Chinese-owned vessels earlier this year, which has impacted trade.
Increased trade tensions between the countries is negative, though the big news yesterday was speculation that China was buying U.S. soybeans.
WHEAT
December Chicago wheat is down 3.50 cents at $5.03. KC wheat is down 3.75 cents at $4.86. Spring wheat is down 3 cents at $5.54.
As expected, Chicago futures continued to test their life of contract lows, with prices pushing lower overnight. Yesterday’s rejection of a move higher was brought with large selling volume. Higher open interest also supported a move lower.
If you read our daily articles, you might have seen that we continued to report favorable global wheat conditions in major-producing countries. It may take a crop scare in the U.S. or elsewhere to trigger a notable short-covering rally.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.