Chicago corn futures were on course for a fourth consecutive weekly increase, supported by hopes that U.S. supply will tighten. Still, they dipped slightly on Friday following poor U.S. export statistics.
A strengthening U.S. currency made U.S. products more expensive for foreign purchasers, contributing to wheat and soybeans’ decline.
Fundamentals
- Although it was up 0.8% for the week, the Chicago Board of Trade’s most active corn contract was down 0.1% at $4.43 per bushel by 0155 GMT.
- CBOT soybeans dropped 0.4% to $9.92-1/4 a bushel, down 0.2% from the close on Friday.
- Wheat was on track to lose 0.1% per week after falling 0.4% to $5.56-1/2 per bushel.
- The U.S. Department of Agriculture improved its forecast for U.S. corn exports. It lowered its estimate for end-of-season U.S. corn stockpiles to 1.738 billion bushels from 1.938 billion, which caused corn futures to jump to $4.51-1/4 on Wednesday, the most since June 25.
- However, net U.S. maize sales were 946,900 metric tons on Thursday, according to USDA weekly export data, which was less than the at least 1.1 million tons that analysts had predicted. Additionally, a stronger dollar would make exports more difficult.
- According to analysts, some traders were taking profits following the surge to 5-1/2-month highs.
- Although USDA later reported an additional 334,000 tons of daily sales to unidentified purchasers, U.S. soybean sales of 1,173,800 metric tons fell short of trade predictions as well.
- The soybean market is threatened by massive South American output, which keeps CBOT prices near four-year lows.
- On Thursday, Brazilian oilseed crushing organization Abiove and national agricultural agency Conab raised their projections for the nation’s 2025 soybean crop, which might hit record levels after better weather.
- Abiove forecasted 168.7 million tons, but Conab stated that Brazil might harvest 166.21 million metric tons.
- Ahead of Monday’s U.S. soybean crush figures, analysts stated that while the daily processing rate probably increased to the highest level ever recorded, the total crush was expected to have decreased in November from an all-time high in October.
- Wheat prices could rise by $20 to $25 per ton in December and January due to strong demand for its exports, according to the Ukrainian Agricultural Producers’ Union, or UAC.
- According to European traders, the General Food Security Authority, Saudi Arabia’s state purchasing agency, has launched an international tender to purchase an estimated 595,000 metric tons of wheat.
Gold prices dipped from a five-week high on Thursday, while key Wall Street indexes and global stocks sank following the European Central Bank’s fourth interest rate cut this year.
