This week, the prices of grains and oilseeds in global markets have shown significant fluctuations, influenced by multiple factors, leading to a noticeable divergence in market trends. Despite a general decline in U.S. grain basis, active international tendering has driven a rebound in demand for wheat and beans. Wheat has remained strong in several international procurements, while the bean market has fluctuated under the dual influence of increased U.S. crude oil inventories and robust export demand.
In the soybean sector, a mild rebound was observed this week, mainly driven by rising futures prices and strong export demand. The CBOT November soybean contract (SX24) rose to $10.20 per bushel. Although the U.S. Midwest soybean basis declined, export demand from the Gulf of Mexico provided support to the market. The price of soybean barges increased due to rising demand from exporters, reflecting higher transport costs in the Gulf.
The soybean meal market showed some weakness. Despite an increase in soybean meal supply, prices remained under downward pressure. The CBOT December soybean meal contract declined as market demand weakened and supply-side pressure became apparent, resulting in a lack of upward price momentum.
In the wheat market, global procurement activities remained strong. The procurement demand from countries like Korea and Jordan pushed prices higher, especially against the backdrop of intensifying trade disputes between Algeria and France, benefiting supplies from other countries. Kansas City hard red winter wheat (HRW) futures prices rose this week, though spot basis remained largely unchanged.
The corn market showed relatively stable performance, supported by rising futures prices and export demand. The U.S. Department of Agriculture confirmed a substantial volume of corn export orders, providing some support to the market. The future market trend will depend on the progress of corn supply from South America and the U.S. In international tenders, Iran's procurement of 120,000 tons of corn further demonstrated the active demand in the global market.
Overall, despite strong global market demand, weather conditions and supply chain changes will continue to dominate market trends in the coming weeks.
