By Blake Jackson
The U.S. cash grain market observed a quiet post-Thanksgiving holiday trade, with spot basis bids for corn and soybeans holding steady across the Midwest. Farmers were hesitant to book fresh sales due to falling Chicago Board of Trade (CBOT) futures prices. CBOT January soybeans futures declined by 1.9% due to favorable rains in Brazil, while March corn futures fell by about 1.2% in a holiday-shortened session.
The U.S. harvest of both crops is nearly complete, with corn progress lagging slightly in Michigan, Ohio, and Wisconsin as of November 19. Despite the quiet market conditions, the USDA reported export sales of U.S. corn in the week ended Nov. 16 at 1,432,400 metric tons, toward the high end of trade expectations. Soybean export sales for the same week totaled 961,300 metric tons, falling short of trade expectations.
Under its daily reporting rules, the USDA also confirmed private sales of U.S. soybeans to China and unknown destinations, all for delivery in the 2023/24 marketing year. These private sales indicate continued export demand for soybeans despite the recent decline in futures prices.
The U.S. cash grain market remains subdued following the holiday trade, with corn and soy basis bids holding steady. However, the USDA's export sales data and private sales confirmation suggest that export demand for both crops remains strong.
Photo Credit: gettyimages-giovanni1232
Categories: Wisconsin, Crops