Grain futures mixed, wheat at 11-week high following USDA exports report

Grain futures were mixed on Friday with corn marking minor daily declines, while soybeans and wheat advanced. A report by the USDA sighting increased wheat exports boosted prices to the highest since mid-July.

On the Chicago Board of Trade, wheat futures for delivery in December rose by 0.02% to $6.7875 a bushel at 8:41 GMT after trading mostly higher throughout the day. Prices held in a narrow range between session low of $6.7738 a bushel and high at $6.7988, the strongest level since July 12. The grain added 1.3% on Thursday, a fourth straight daily gain, and has so far advanced nearly 5.1% this week after surging 0.8% in the preceding five-day period.

Wheat continued to edge higher after the U.S. Department of Agriculture said in its exports report yesterday that the nation has sold a net 620 212 tons of wheat in the week ended September 19 with China accounting for 28% of the new sales. U.S. exports over the past four weeks exceeded last years outbound shipments by 40% during the comparable period. China, the world’s biggest consumer, is increasing imports to reduce local prices and boost stockpiles. Smaller domestic output and higher demand this year led to a 3.4% jump in prices in September, data by China National Grain & Oils Information Center showed.

Meanwhile according to the United Nations’ Food & Agriculture Organization, Argentinas output may fall to 9.5 million tons from previously estimated at 11 million. The country is the southern hemispheres second biggest producer.

Luke Mathews, a commodity strategist at Commonwealth Bank of Australia wrote in a note: “Another strong U.S. export sales result supported values. Continued focus on disappointing Argentinean production prospects and speculation about Chinese wheat import volumes may also support prices.”

DTN reported on September 26 that showers in the Southern Plains at the end of the week will help improve soil moisture for the winter wheat crop but there might be some delays to summer crop harvests and winter wheat planting.

The USDA reported on Monday that as of September 22, 23% of the winter wheat crop was planted, the same like the comparable week a year earlier and 1% below the five-year average pace. Meanwhile, 93% of the spring wheat crop was harvested last week, the same as the five-year average but below last year’s full completion.

Elsewhere on the grains market, corn marked a minor daily decline, while soybeans advanced. Corn futures for settlement in December fell by 0.07% to $4.5688 a bushel at 8:59 GMT and held in range between days high and low of $4.5738 and $4.5538 a bushel respectively. The grain rose by 0.6% on Thursday, extending its weekly advance to 1.2%.

Meanwhile, soybeans for delivery in November rose by 0.33% to $13.2138 a bushel at 9:03 GMT, varying between session high and low of $13.2188 and $13.1175 a bushel. The contract slipped 0.3% on Thursday but increased its weekly advance to 0.4% on Friday.

The USDA reported on Monday that soybeans condition remained unchanged last week after worsening for five consecutive weeks. As of September 22, 50% of the plants were rated good-excellent, the same as in the previous period and well above last year’s 35%. Meanwhile, the corn crop condition improved last week with 55% of the harvest rated good-excellent, marking a 2% improvement from the previous period and well above last year’s 24%.

As for the harvesting pace, the USDA reported that 7% of the corn crop was reaped as of September 22, up from 4% in the previous week but well below the five-year average pace of 16% and last year’s 37%.