Down day for soybeans, corn and wheat according to USDA reports

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Down day for soybeans, corn and wheat according to USDA reports

Soybeans fell due to fund and technical selling, contributing to the lower weekend result. The USDA’s 2024 production estimate was slightly lower than last month, but 10% higher than a year ago, with no change in U.S. ending stocks. Slightly higher starting inventories offset this lower production estimate and there were no changes to the demand outlook. The global numbers of old and new harvests remained almost stable overall compared to September. The USDA has raised China’s old estimate of crop imports by half a million tonnes. Now the trade is refocused on monitoring harvest activity in the US and planting weather in South America. The USDA’s weekly crop progress and condition numbers will be released Monday afternoon. Ahead of Friday’s opening, undisclosed destinations purchased 132,000 tons of 2024/25 season U.S. soybeans. Soybean meal and oil fell due to the fundamental impact of a large US crop.

Corn fell due to fund and technical selling, resulting in a lower weekly close. U.S. corn production is up slightly from last month, down slightly from a year ago, and ending stocks are now just under 2 billion bushels. The slight increase in production was offset by lower opening inventories and a higher export estimate. Short-term crop conditions in the US generally look favorable. Global adjustments were small overall and there were no changes in new crop production in South America or in exports. This is not a big surprise as planting has just begun in Argentina and Brazil and is expected to pick up pace once the forecast rains arrive. However, changes in acreage continue to occur, and if Brazil continues to experience delays in soy production, this will impact second-crop maize acreage. CONAB’s updated outlook for Brazil will be published on Tuesday, October 15th^Th. Unknown destinations purchased 577,928 tons of 2024/25 U.S. corn before opening.

The wheat complex was lower due to fund and technical selling, but still closed above where it was a week ago in the most active months. Ending stocks of U.S. wheat fell slightly due to lower beginning stocks and a monthly decline in production, while global supply increased slightly. The USDA cut production for the European Union and Russia but slightly raised the outlook for Ukraine. It looks like more aggressive changes will wait at least until the next round of supply, demand and production numbers on November 8th^Th. Australia continues to struggle with dry weather in some areas and frost in others, and Argentina could see an increase in abandonment due to dry weather at key times of the growing season.