Market News

Corn, wheat drift downward

Soybeans were mostly modestly higher on commercial spread trade, rallying somewhat after early losses. Forecasts have widespread rain in dry areas of Brazil, which should last into the early part of January. Harvest activity is just getting underway in some southern areas, but this should aid some of the later planted soybeans. While Brazil remains largely in control of the global soybean market, low early yields and the delays in planting could boost U.S. exports, at least in the short-term. CONAB’s updated outlook for Brazil is set for January 4th, with the USDA’s new supply, demand, and production report out January 12th. Conditions remain mostly favorable in much of Argentina. The big question for Argentina is the impact of new trade and export policies. Soybean meal was weak to modestly lower on fund selling, while bean oil finished mostly modestly higher on commercial spread activity.

Corn was modestly lower on fund and technical selling. Corn is watching weather in South America, waiting to see what second crop acreage looks like in Brazil. Brazil’s second crop is the largest of the three and the source of most of their exports. Planted area was already projected to be below last growing season and the soybean planting delays earlier in this growing season might have cut that number even further. Demand for ethanol use remains solid, even if margins have narrowed, and export demand for U.S. corn has improved. The U.S. Energy Information Administration’s weekly ethanol production and stocks numbers are out Thursday. Also stateside, the trade’s waiting for the USDA’s preliminary 2023 U.S. corn and soybean production totals and watching for any signals on the 2024 acreage mix.

The wheat complex was lower on profit taking and technical selling, despite losses in the U.S. dollar during the session. Export demand for U.S. wheat continues to be lackluster, with Russia holding most of the market share due to a significant price advantage. Aside from that brief spike in soft red winter demand from China, that’s been the story for U.S. wheat over the last several months. Many U.S. winter wheat growing areas should see precipitation this week. That’s definitely welcome in the Plains but could cause ponding issues in areas with adequate soil moisture levels. Heavy rainfall in some areas is expected to cut planted area in the United Kingdom, France, and Germany. The trade continues to monitor war impacting business and movement in the Middle East and Ukraine.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!