U.S. grains: Wheat down on supply outlook boost

Soybeans hit two-month high before retreating; expected increase in U.S. yields weighs on corn

Reading Time: 2 minutes

Published: November 7, 2023

,

CBOT December 2023 soft red winter wheat with 20-day moving average, MGEX December 2023 hard red spring wheat (yellow high/low/close) and K.C. December 2023 hard red winter wheat (orange H/L/C). (Barchart)

Chicago | Reuters — U.S. wheat futures declined on Tuesday as the markets reacted to better-than-expected crop conditions, while soybean futures climbed to a two-month high on adverse weather conditions in Brazil before retreating.

The U.S. Department of Agriculture (USDA) rated 50 per cent of the country’s winter wheat crop in good-to-excellent condition after trading ended on Monday, up three percentage points from the previous week. It was the highest rating for this time of year since 2019.

“This is an OK crop. It’s not like it is a wonderful crop,” said Jason Ward, managing director of Northstar Commodity in Minneapolis. “It is dramatically better than what it was a year ago.”

Read Also

Animal health worker Eduardo Lugo treats the wounds of a cow as Chihuahua ranchers intensify surveillance for the screwworm after the U.S. suspended cattle imports following the detection of the parasite in southern Mexico, at the Chihuahua Regional Livestock Union, in Nuevo Palomas, Mexico May 16, 2025. Photo: Reuters/Jose Luis Gonzalez

U.S. again halts cattle imports from Mexico over flesh-eating screwworms

The flesh-eating livestock pest New World screwworm has advanced closer to the U.S. border with Mexico, the U.S. Department of Agriculture said, prompting Washington to block imports of Mexican cattle just days after it allowed them to resume at a port of entry in Arizona.

K.C. December hard red winter wheat closed down 13-1/4 cents at $6.32-1/2 a bushel, and MGEX December spring wheat was last down 4-1/2 cents at $7.24-1/4 a bushel (all figures US$). The most-active Chicago Board of Trade wheat contract settled down 5-1/2 cents at $5.70-1/4 per bushel.

Improved crop prospects after rainfall in drought-hit Australia and Argentina also weighed on wheat prices.

Brazil, the world’s top soybean supplier, saw torrential downpours in southern areas while arid conditions persisted to the north.

“Southern Brazil has been way too wet, and there is more rain in the forecast,” Ward said.

During Tuesday’s session, most-active soybeans hit $13.80 a bushel, their highest price since Sept. 6, before settling down two cents at $13.62 per bushel. Soymeal futures reached contract highs.

USDA reported exporters sold more U.S. soybeans to China.

Corn ended down 8-3/4 cents at $4.68-1/2 a bushel on higher U.S. yield prospects.

The U.S. corn harvest was 81 per cent complete by Sunday, slightly below the average analyst estimate of 82 per cent but ahead of the five-year average pace of 77 per cent.

Traders are waiting for USDA to issue its November supply/demand and crop production data on Thursday.

“The yield is seen as coming in higher than it was a month ago,” said Lane Akre, economist with ProFarmer. “That’s historically not the case coming into November, and I think traders kind of realize that.”

— Brendan O’Brien is a Reuters breaking news reporter in Chicago.

explore

Stories from our other publications