Market News
A strong start to the week for soybeans, corn, and wheat
Soybeans started the week with another solid day of gains following Friday’s production report from the USDA. While total production for 2024 was up from 2023, it was less than the department projected in December, pulling ending stocks lower. USDA also lowered yields by 1 bpa. The market is shifting its primary focus to South American crop development weather, specifically what’s happening in Argentina. Traders continue to monitor the global market situation as there are significant concerns sweeping tariffs could be implemented under the incoming administration. Soybean meal and soybean oil also had a very strong start to the week.
Corn was higher following Friday’s report where the USDA cut yields for 2024 significantly. Quarterly corn stocks were under a year ago. Demand for US corn has been strong through this point in the marketing year, but if that can continue for the remainder of the year is uncertain. Export sales for corn last week hit a marketing-year low. China’s government did lower its export guess to 9 million tons, above the current USDA outlook. CONAB’s new outlook for Brazil’s crop comes out on Tuesday. The market will largely shift its focus to the development of the South American crop. There is some crop stress being reported in Argentina.
The wheat complex took the path of least resistance to kick off the week and followed corn and soybeans higher. Friday’s reports didn’t have too much influence on the crop. The USDA did increase exports for Australia and Canada, while it lowered outlooks for Russia and Ukraine. Weather in the Plains is expected to moderate this week before turning colder and the next round of precipitation. The market continues to keep an eye on harvest activity in Argentina and Australia and crop development conditions in the Black Sea region (along with the U.S.)
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