Grains and oilseeds are mixed on Wednesday. The U.S. dollar continued to push higher overnight and is at a five-month high. Crude oil is lower again. Stock futures are mostly steady ahead of the morning session after reversing overnight losses.
CORN
December corn is down 0.25 cents at $4.31 ¼. March corn is up 0.25 cents at $4.45.
Futures reversed Monday’s gains in turnaround Tuesday, with the December contract losing 2.75 cents yesterday. Prices continued to consolidate this week and held the the $4.30 support area.
The EIA will release the latest ethanol production data for last week. Output remains at seasonal highs, though domestic inventories continued to operate above the five-year average.
China removed tariffs on U.S. corn imports, though weak import demand suggests that China has no reason to start buying U.S. corn for the time being.
Favorable rainfall made its way into parts of Brazil’s summer corn production areas over the past couple of days. Precipitation deficits remain for most of Southern Brazil, where more than a third of the crop is grown.
SOYBEANS
January soybeans are up 3.25 cents at $11.24 ¾. New crop November soybeans are up 2.75 cents at $11.05 ¾. Soybean meal is higher following Tuesday’s losses. Soybean oil is moderately higher.
Futures paused their recent rally on Tuesday, with the January contract losing 12.75 cents. Prices traded at the highest since July 2024 this week after breaking above their spring highs. A pullback could get bought if harder details between the U.S. and China’s trade truce guarantee more soybean exports.
China officially announced that it will remove retaliatory tariffs on some U.S. farm products, including soybeans, corn, wheat, and soybeans on Nov. 10. However, soybeans will still face a 13 percent tariff despite the reduction.
Bangladesh soybean processors and meal importers pledged to buy over $1.25 billion of U.S. soybeans and soybean meal over the next 12 months.
WHEAT
December Chicago wheat is down 2.25 cents at $5.48. KC wheat is 3 cents lower at $5.33 ½. Spring wheat is down 1.25 cents at $5.56.
The rally in winter wheat futures initially looked to have stalled out early on Tuesday. However, late-session trading brought more buying and sent the December Chicago contract another 6.75 cents higher, closing at $5.50 ¼ a bushel.
Lower open interest for the day suggested additional short-covering as initial sellers continued to get squeezed out of their short positions. Higher prices could be in the cards if additional gains come from outright buying. For now, there seems to be an unwillingness to be short the market.
The strong rally in the grain prices and the U.S. dollar are making grains more expensive than global competitors. That may challenge wheat demand in the near-term, but the lack of USDA data will make it difficult to see if the higher prices impact future sales.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.