CORN HIGHLIGHTS:

• Corn prices rose for the second straight session, with March futures up 7 cents on the week, closing near weekly highs.
• Strong export sales and ethanol demand have supported prices since August lows, but year-end farmer selling may limit rallies.
• Favorable cash and basis levels persist as producers hold onto stored supplies, a trend likely to continue into early 2025.
• The USDA’s December WASDE report on Tuesday is expected to show higher export and ethanol demand, reducing corn carryout to 1.906 billion bushels.

SOYBEAN HIGHLIGHTS:

• Soybeans closed mixed, continuing to consolidate ahead of next week’s USDA report, as supportive demand clashed with strong South American crop prospects. Opposing trends in soybean oil (higher) and meal (lower) added to the market’s lack of direction.
• Early trade estimates for Tuesday’s USDA report suggest minimal, if any, changes to US, South American, or global soybean supply and demand figures.
• The bull market story for soybeans remains strong US crush and export demand, while market bears remain focused on benign South American weather and large crop prospects.
• With a burdensome world supply outlook, it might take a South American weather scare to move prices significantly higher.

WHEAT HIGHLIGHTS:

• Wheat closed mixed, with small losses in Chicago and Minneapolis but a slight gain in Kansas City. Matif wheat and the US Dollar Index offered little direction, trading both sides of unchanged.
• Tuesday’s USDA WASDE report is expected to show minimal changes for wheat, with U.S. 24/25 carryout projected at 816 mb and global 23/24 and 24/25 stocks steady at 266.3 mmt and 257.6 mmt, respectively.
• Australian and Argentine wheat harvests may be capping prices. Argentina’s harvest is 48.1% complete, up from 38.7% last week, with production estimated at 18.6 mmt, compared to 15.1 mmt last year.
• French soft wheat planting reached 96% by Dec. 2, ahead of last year’s 87% and above the five-year average of 93%, with 86% rated good or very good, according to FranceAgriMer.
• Russia’s 25/26 wheat crop is forecast at 81.5 mmt, with estimates ranging from 77.4 to 85.6 mmt. Conditions are reportedly the worst since 2003 due to adverse weather.

DAIRY HIGHLIGHTS:

• Class III futures were able to close higher heading into the weekend. January futures closed 40 cents higher to $19.45 followed by February futures which improved 33 cents to $19.43.
• Spot cheese erased yesterday’s losses, gaining 4.1250 cents to close at $1.6950/lb. Whey tacked on 0.75 cents to close at $0.71/lb.
• Class IV futures were quiet on the day with light volume trading. December futures closed 21 cents higher while 2025 contracts were either slightly lower or unchanged.
• Spot butter gained half a cent to close at $2.5450/lb while powder closed 0.75 cents higher to $1.39/lb.

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Author

John Heinberg