Grains and oilseeds are steady to higher on Friday following the overnight session. The U.S. dollar is higher. Crude oil is steady. Stock futures are mixed.
CORN
December corn is up 2.25 cents at $4.24. March corn is up 1.75 cents at $4.37 ¼.
Futures extended gains and closed higher for a third consecutive session on Thursday, posting a 5-cent gain on the day. December prices traded as high as $4.23 ½ before finding gains were capped by the 100-day moving average.
Gains had been previously limited below the technical level last week. However, they were able to push above the moving average overnight. The $4.28 ½ to $4.30 level was previous resistance that contained buying in September.
U.S. ethanol production averaged 1.074 million barrels a day last week, up 0.3 percent from the previous week. Output also rebounded above year-ago levels as more supplies came online with the fall harvest. It will be key to watch ethanol production moving forward and if lower energy prices impact output down the road.
The Netherlands government is banning denatured ethanol in gasoline starting in 2026. The move can potentially hurt future U.S. exports, as we ship a lot of denatured ethanol overseas, and the Netherlands is one of the top destinations.
SOYBEANS
November soybeans are up 5.50 cents at $10.16 ¼. January soybeans are 5 cents higher at $10.33 ½. Soybean meal is sharply higher and extending a rebound from lows earlier in the week. Soybean oil is moderately lower.
Futures traded sharply higher early in the session on Thursday and posted double-digit gains. However, prices gave back most of their gains, with the November contract closing below mid-range.
Soybeans were closely following market exuberance from soybean oil, which had hit the highest in nearly two months before reversing gains.
USDA Secretary Brooke Rollins said she is in talks with some South American nations for them to do “some crushing there for our soybeans and others.” We’re not exactly sure what that would entail, but it doesn’t necessarily sound like increased demand for U.S. soybeans.
WHEAT
December Chicago wheat is up 0.25 cents at $5.02 ¾. KC wheat is down 0.25 cents at $4.88 ½. Spring wheat is up 1.50 cents at $5.51.
Futures continued their steady recovery from contract lows, with the Chicago rising 3.75 cents on Thursday to close back above the $5 handle. KC wheat was much quieter and rose only half a penny to $4.88 ¾.
Soil moisture remains favorable for crop establishment in the U.S. Plains. Globally, wheat production remains adequate, which is bearish for prices.
The Grain Industry Association of Western Australia raised its wheat crop production forecast by nearly 1 MMT from the previous month to 12.63 MMT. The higher estimate was due to timely rains reaching crop areas in September.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.