Market News
Another quiet close for soybeans, corn, wheat
Soybeans closed mixed. Contracts were firm for most of the day, but those gains wilted late in most months with a lack of any real fresh fundamental news. The trade’s watching South American harvest activity and U.S. weather ahead of widespread planting, while waiting for some clarity on tariffs and shipping fees, especially as they pertain to China. The USDA’s new supply, demand, and production report and CONAB’s updated outlook for Brazil will be released April 10th. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Bean oil had additional support from the higher move in crude oil.
Corn was lower on fund and technical selling. Corn is continuing to get ready for next Monday’s USDA numbers, expecting higher planted area and tighter quarterly stocks. Those reports are both out on the 31st at Noon Eastern/11 Central. The trade is also keeping an eye on harvest activity in Argentina and second crop development weather in Brazil. Overall demand is solid and higher prices in Brazil are positive for U.S. exports. The U.S. Energy Information Administration says ethanol production averaged 1.053 million barrels per day, a decline of 52,000 on the week and 1,000 on the year, with stocks of 27.35 million barrels, an increase of 775,000 from the week before and 1.258 million from a year ago and exports averaging 164,000 barrels a day, rising 53,000 from the prior week and 80,000 from last year.
The wheat complex was lower on fund and technical selling, along with the higher trade in the dollar during the session. There’s at least some rain in the forecast for the Black Sea region, with only scattered precipitation expected in the southern U.S. Plains. Parts of the soft red winter region should see rain, and snow, during the back half of this week. Wheat also has an eye on conditions ahead of widespread spring wheat planting. There are a lot of questions about the impact of a potential ceasefire between Russia and Ukraine. It’s not expected to do a whole lot for old crop exports, U.S. or otherwise, but if terms are agreed to and the Black Sea remains open for shipping long-term, it could lead to increased flow of ag commodities out of the region. Still, details on the proposed pact have been scarce and a ceasefire on energy infrastructure has not been strictly adhered to, and any changes in movement will also be subject to production. The USDA’s weekly U.S. export sales numbers are out Thursday morning.
Add Comment