CORN HIGHLIGHTS:

• Corn’s four-day rally ended as producer selling and technical resistance near 451 stalled front-end buying strength following Tuesday’s bullish USDA report.
• March corn futures stalled around 451, near the 200-day moving average, where buying support faded and producer selling likely capped gains.
• Higher US corn prices and a stronger dollar have made Brazilian, Argentinian, and Ukrainian corn more competitive, potentially limiting US export demand and upward price momentum.
• Narrow corn spreads, reflecting strong short-term demand, saw reversal action. Deferred contracts (May, July, and September) may need to strengthen to encourage producers to hold bushels for the second half of the marketing year.
• The stronger corn prices and dollar may boost Safrinha corn planting in Brazil this summer, with forecasts now suggesting year-over-year growth in planted areas despite earlier expectations of a reduction.

SOYBEAN HIGHLIGHTS:

• Soybeans posted a small gain for the second day, staying in a tight range despite losses in soybean meal and oil, with May meal the only soy product to close higher.
• Rumors suggest China purchased a few US soybean cargoes for January and February from the PNW, with US soybeans competitive against Brazil for January shipments.
• The USDA report was uneventful for soybeans, leaving US production and ending stocks unchanged while only raising Argentina’s production from 51.0 mmt to 52.0 mmt.
• Post-WASDE, the soybean market focus will shift to South American weather as critical production periods approach. Most of Brazil is expected to see favorable conditions over the next week.

WHEAT HIGHLIGHTS:

• Wheat posted small gains in Chicago and Kansas City but was closer to unchanged in Minneapolis. March Matif wheat’s second straight gain offered support, though a stronger US Dollar Index potentially capped the upside.
• IKAR reports Russian farmers may switch up to 1 million hectares from wheat to oilseeds due to thin margins.
• EU soft wheat exports reached 10.24 mmt as of December 8, down 29% year over year. Tight global wheat stocks among major exporters may continue to support prices.

DAIRY HIGHLIGHTS:

• Class III milk saw positive movement today, with its second-month futures rising by 27 cents, closing at $19.52.
• Spot cheese closed up 0.3750 cents at $1.71250/lb.
• Spot whey set a new high for the year closing up 2 cents at $0.75/lb.
• Class IV milk futures had very little volume traded today and the second month futures contract closed down 7 cents at $20.75.
• Spot butter closed down 0.25 cents at $2.5275/lb. While spot powder remained unchanged at $1.3825/lb.

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Author

John Heinberg