Monday October 7, 2024

  • Monday morning markets are mixed. Corn and wheat are trading slightly in the green, beans trading in the red. 
  • Friday Flash Sales
    • 116,000mt of soybeans sold to China for delivery during the 24/25 marketing year. 
    • 198,000mt of corn sold to unknown destination for delivery during the 24/25 marketing year. 
  • The CFTC released its weekly report on Friday. The “funds” have reduced their net short position in the corn and soybean markets. Corn was short 72k contracts and soybeans were net buyers of 44k contracts. 
  • Active fighting in the Middle East continues, crude oil futures posted fresh multi-week highs overnight. 
  • Russian Wheat prices have once again climbed to their highest level since late June. A 4.3% increase in the last two weeks, is due to sevre drought, lower production, and export forecasts. 
  • Brazil soybean planting continues, moisture levels are still low, some weather models are forecasting rainfall to return this week. The country is estimated at 4.1% complete planted vs the 7.8% last year. 
  • The U.S. Weather forecast remains warm and dry into late October, Argentina will see beneficial rains in the north this week but dry conditions in the south. 
  • Friday’s jobs report came out higher than expected, as 254k jobs were added last month, well above the 150k pre-report estimates. The economy appears to still be doing well as the labour market remains strong. 
  • The image below shows the 15 instances where national corn yields rose in Sept, they went on to decline only three times in October, with two unchanged. Although we didn’t have a September increase, beans show a similar trend on strong crop years.