Grains and oilseeds are mixed on Thursday following the overnight session. Positive news came from the meeting between President Trump and Xi last night, which helped soybeans. The U.S. dollar also surged around the news. Crude oil is lower. Stock futures are sharply lower.
CORN
December corn is up 0.50 cents at $4.34 ½. March corn is down 0.25 cents at $4.46 ½.
Futures continued to post fresh high closes on Wednesday, with the December contract trading 2 cents higher. Prices sold off overnight but ran out of sellers around the $4.28 ½ to $4.30 support level.
Corn seems to be following the soybean market, as the two compete for acres next year. Overnight weakness in wheat is also weighing on corn.
U.S. ethanol production continued to run at seasonal highs, with output averaging 1.091 million barrels a day last week. Margins remain positive, with strong demand for ethanol exports driving optimism.
SOYBEANS
January soybeans are up 15 cents at $11.09 ½. New crop November soybeans are up 0.75 cents at $10.99 ¼. Soybean meal is sharply higher. Soybean oil is lower.
Futures surged overnight following positive developments from the Trump-Xi meeting. The U.S. and China agreed to suspend the tit-for-tat reciprocal port fees by one year.
Additionally, U.S. Treasury Secretary Scott Bessent said China has agreed to buy 12 MMT of soybeans this year. Additionally, China said it will buy a minimum of 25 million metric tons of soybeans annually for the next three years.
That is great news, but it’s important to keep in mind that this is not a set in stone deal
It makes sense that soybean meal is rallying on this news. Pulling those bushels to China means less domestic crush when our export demand has been relatively strong.
WHEAT
December Chicago wheat is down 4 cents at $5.28 ¼. KC wheat is down 5.75 cents at $5.17. Spring wheat is up 0.25 cents at $6.24 ½.
Futures struggled to hold onto gains overnight after testing the $5.34 resistance level again, which is also around the 100-day moving average. That level is proving to be more difficult to move past. A move above it could open the door to additional short-covering.
For now, wheat seems to be the follower of this current move.
Russia’s October wheat exports are expected to reach between 5.1 and 5.7 MMT, according to Russian-based analysts. Russia’s wheat exports this season have been running about 30 percent behind last year.
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