Happy Veteran’s Day! Thank you to those who have served.
Grains and oilseeds are mostly lower on Tuesday following yesterday’s gains. The U.S. Senate passed their budget bill last night after eight Democrats sided with Republicans. The House will have to vote on the bill before it reaches the president’s desk.
CORN
December corn is down 1 cent at $4.28 ¾. March corn is down 1 cent at $4.43 ½.
December futures traded a moderate 2.50 cents higher on Monday and continued to hold within their consolidation range. Prices have been mostly directionless since late October.
The market is gearing up for Friday’s WASDE report. We should have pre-report estimates from Bloomberg out soon.
Meanwhile, another Bloomberg survey predicts that the U.S. corn harvest is 92 percent complete. Snowfall over the weekend likely stalled progress in some areas, though the idea of harvest delays are likely too isolated for the market to care too much.
SOYBEANS
January soybeans are down 6.50 cents at $11.23 ½. New crop November soybeans are down 3.25 cents at $11.07 ¼. Soybean oil is higher following yesterday’s gains. Soybean meal is lower.
Futures extended Friday’s gains after rising 13 cents on Monday. Open interest was higher, but volume indicated a relatively light trading day. Prices may still attempt to challenge last week’s 16-month highs, but the market could wait to make another large move after the USDA releases its WASDE report.
Soybean oil prices caught a bid since falling to a four-month low last week. An upside breakout The EPA may not release its biofuel blending mandates until the first quarter of next year, which holds uncertainty over the biofuels industry.
There haven’t been any additional media reports of China buying U.S. soybeans. China could still be buying soybeans under the radar with the lack of USDA reports. But that won’t be confirmed until the government reopens.
Rains have been lackluster in Brazil, with precipitation falling below normal for the past couple of weeks. However, it’s too early to predict a weather scare due to South America’s ability to catch up on moisture with just one heavy rainfall.
WHEAT
December Chicago wheat is down 2.75 cents at $5.33. KC wheat is down 5.25 cents at $5.21 ¾. Spring wheat is down 0.25 cents at $5.64.
Chicago futures traded 8 cents higher on Monday but fell short of trading above the $5.36 support/resistance level. Prices had traded above it overnight but quickly came under pressure ahead of the morning session.
The March contract is quickly overtaking December. Prices on the March also struggled to trade above old resistance last night.
Russian-based consultancy firm SovEcon said it expects the country to produce 84 MMT of wheat in the upcoming 2026 season, compared to the 2025 estimate of 87.8 MMT. The drop is due to lower wheat plantings.
Global wheat production prospects continue to be bearish so far, though we have a long growing season ahead of us.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.