The most active corn contract for December delivery fell 8.25 cents, or 1.2 percent, to settle at 6.7925 U.S. dollars per bushel. December wheat shed 5.5 cents, or 0.65 percent, to settle at 8.405 dollars per bushel. January soybean lost 17 cents, or 1.17 percent, to settle at 14.37 dollars per bushel.
Corn, wheat and soybean were weak on unexciting export demand. Daily wheat price hinges almost fully upon Russia's decision over the export corridor.
Markets will struggle to see beyond the week ahead amid outsized geopolitical influence and the uncertain timing of La Nina's end this winter. A lasting change in direction is unlikely prior to late December/January, when South American yield potential is better known. Chicago-based research company AgResource holds that rallies should be used to add to cash sales.
U.S. corn export sales through the week ending Oct. 27 totaled 15 million bushels, as against 10 million bushels in the previous week. The weak pace of export sales and shipments reflect U.S. corn's non-competitive position in the world market, which remains intact into December. Corn supplies in Brazil are abundant today but will be tightening January onward.
U.S. soybean sales in the week ending Oct. 27 were 31 million bushels, as against 38 million bushels in the previous week. Wheat sales totaled 13 million bushels, as against 20 million bushels.
The premium of U.S. soybean to South American origin has widened to 20-25 dollars per metric ton, as against 5-15 dollar/ton in mid-October.
The U.S. Department of Agriculture will release its November World Agricultural Supply and Demand Estimate report next week.
Another round of expansion/intensification of drought in Kansas and across the Dakotas, as well as lack of projected rainfall across the Western Plains bodes poorly for winter wheat crop condition improvement. Despite coming rainfall across the far Eastern Plains and Upper Midwest, lasting improvement in Mississippi River water levels is unlikely.
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