Friday September 20, 2024

Markets are mixed to end off the week.Wheat is trying to make a rebound off of technical support but is struggling even with production issues in other countries.Corn and soybeans are range bound heading into the weekend, US harvest is still keeping some pressure on the market.Drought conditions have worsened across the Midwest and key crop producing states. If these areas don’t see rain, river levels could fall and crop conditions could deteriorate. The drought stressed crops could experience more broken or moldy kernels which could impact storage stability.Chinese corn imports continue to decline, August imports are down 64%. This was the 7th straight month of lower imports.South America continues to have the advantage for corn import costs into China. However, Brazilian corn shipments to China have slowed. We didn’t see china purchase any US corn last week. Last year China imported 25% of their corn from the US, this year they’ve only imported 15%.With Brazils smaller crop it could lead to Brazilian corn exports declining. This could make room for US exporters to ship more to China. Diplomatic tensions may stand in the way of China increasing their imports from the US.The Export Sales Report showed that corn met expectations and soybeans exceeded the trade guess. Wheat missed the mark but is still slightly ahead of the USDA target. Corn and beans are still trailing behind the needed pace.