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Crop futures trade higher on trade, weather support

The soybean complex closed higher on fundamental support. Mixed South American weather has kept the market’s attention. Moderate to heavy rains are expected for Brazil this week with little to light showers expected for Argentina. Even with expected rainfall, Argentina and the southern half of Brazil remain in extreme drought. North American weather is becoming more important as planting season ramps up. Gains for crude oil on the day have provided upward momentum for the complex, especially bean oil. Soybean futures traded sharply lower last week with USDA’s Prospective Planting report estimating record U.S. soybean acreage this growing season. May soybeans closed at $16.02 and 1/4 – up 19 and 1/2 cents, July beans closed at $15.89 – up 22 and 1/4 cents, May soybean meal closed $5.10 higher at $455.10 and May soybean oil closed 114 points higher at $72.34.

Corn was higher on the day with support from coming from the export market. USDA announced the sale of more than 1 million metric tons of corn to China this morning. Nearly 700,000 metric tons of the sale are for delivery this marketing year and about 400,000 for next marketing year. USDA’s recent Prospective Planting report was mostly supportive to corn futures and could continue to add strength as planting season gets underway. The market continues to watch any news coming out of the Black Sea region with little positives coming from recent peace talks. The market would likely see sharp adjustments with any concrete steps toward peace or impactful Russian aggression. Corn planting is on pace with last year and the five-year average with two percent of the crop planted. Texas’ crop is past halfway planted, Kansas is at two percent and Missouri is at one percent. May corn closed at $7.50 and 1/2 – up 15 and 1/2 cents, and July corn closed 17 and 1/2 cents higher at $7.39 and 1/4.

Wheat traded higher on the day. The complex remains at elevated levels from ongoing Russian aggression in the Black Sea region. Dry weather west of the Mississippi River, especially in Nebraska, Kansas, and South Dakota, are continuing to add upward momentum to the market. The complex will be closely watching USDA’s first crop progress report of the year for trading signals. Chicago and Kansas City wheat did trade lower following USDA’s prospective planting report while Minnesota traded higher. USDA’s first crop progress and condition report of the spring could be a market mover Tuesday. Winter wheat is rated 53 percent good to excellent. Four percent of the crop has headed. Spring wheat is three percent planted. Nine percent of South Dakota’s crop is planted, one percent of Minnesota’s crop is planted. May Chicago closed 25 and 3/4 cents higher at $10.10 and 1/4, May Kansas City closed 24 and 3/4 higher at $10.37 and 3/4, and May Minneapolis closed 19 and 3/4 higher at $10.85.

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