Soybean prices pushed higher in Chicago Thursday thanks to stronger export numbers and efforts by speculators to cover their short positions.
In addition, markets reacted positively to news that China will move to reduce the average rate of tariffs on its primary import markets, although it remains unclear if the United States will be on that list.
Meanwhile, wheat prices were off slightly, while corn prices found gains despite ongoing harvest pressures. Here’s what else you need to know about soybean prices and more at the Chicago Board of Trade.
Wheat Prices Mixed in Chicago
In Chicago, December SRW contracts dipped 0.25 cents, while March contracts added 0.75 cents to end the day at $5.41 per bushel.
In Kansas City, December HRW contracts shed 0.5 cents to close a tick under $5.26. The March 2019 contract lost 1.25 cents end finished under $5.87.
On Thursday, the USDA announced net sales of more than 468,000 MT. That figure was a 21% jump from the previous week. The nation saw strong demand from the Philippines, Indonesia, Vietnam, Thailand, and South Korea.
The agency said that total weekly exports fell 27% week-over-week. The nation shipped 315,100 MT. The top five destinations were Japan (150,600 MT), Mexico (49,900 MT), Malaysia (43,500 MT), Ecuador (25,000 MT), and Honduras (17,700 MT).
The agency says that it shipped 154,600 MT of winter wheat for the week.
Total shipments of SRW and HRW wheat this year have totaled 2.275.7 MMT.
That figure is about 44% off from a year ago.
Hard Red Spring shipments totaled 109,000 MT for the week. Total spring week shipments for the current year have hit 1.738 MMT. That figure is 20.8% behind the previous year’s pace.
In Minneapolis, December spring wheat contracts lost 1.25 cents and ended the day under $5.87. The March 2019 contract lost 1.25 and end the day at $6.00 per bushel.
Corn Finds Gains Despite Harvest Pressures
The December 2018 corn contract added 6.5 cents on the day and closed just above $3.52. The March 2019 contract added 6.5 cents and closed at $3.655. This morning, the USDA reported a private sale of 160,020 MT of corn to Mexico for the current marketing year.
The USDA also said Thursday that new crop corn sales came in at 1.383 MMT. Strong buying out of Mexico, South Korea, and Japan were notable in the report.
The agency said that 2019/2020 net sales hit 9.700 MT.
Total exports hit 1.077 MMT. The top five destinations for U.S. corn were Mexico (398,900 MT), Japan (96,000 MT), Taiwan (86,900 MT), Saudi Arabia (73,800 MT), and Colombia (73,300 MT).
This year, corn shipments have totaled 1.804 MMT. That figure is 27.2% ahead of the pace from last year.
For anyone keeping score on the impact of the trade dispute between the United States and China, look no further than the sorghum market. The USDA said that weekly exports came in at just 1,700 MT. So far, this marketing year, the US has shipped just 2,600 MT.
That figure is well behind the 123,500 MT pace from last year.
Soybean Exports Picture Improves
Today, November soybean contracts added 16.5 cents to end trading at $8.465. The January contract added 16.25 cents to close at $8.60.
This week, the USDA announced net sales for 2018/19 that totaled 917,600 MT.
Weekly exports came in at nearly 801,000 MT. The top five destinations for U.S. soybeans were Mexico (140,900 MT), Spain (126,900 MT), Indonesia (119,600 MT), Iran (66,500 MT), and the Netherlands (65,200 MT).
So far, this marketing year, the USDA has reported soybean exports of 1.696 MMT. That is 19.1% behind last year’s pace of 2.096 MMT.
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