Market News

Failing Ukrainian, Russian peace talks drive up grain futures

The soybean complex closed sharply higher following steep losses Tuesday. Soybean futures regained nearly all the prior day’s losses. Early upward momentum in the crude oil market provided support for soybean oil especially. Soybean demand on the global market has cautiously been supported. Concerns of COVID related lockdowns in major Chinese shipping cities, impacting crush facilities, has added uncertainty and volatility into the market. Wednesday morning, USDA announced the private sale of 128,000 metric tons of new crop soybeans to Mexico. May soybeans closed 21 cents higher at $16.64, July soybeans gained 18 and 3/4 cents on the day closing at $16.42 and 1/2, soybean meal closed $7.10 higher at $473.10, and soybean oil closed 56 points higher at $72.22.

Corn futures regained about half of Tuesday’s losses during Wednesday’s session. The market was sharply higher early in the session on an oversold bounce before seeing some spread adjustments. Grain futures are rebounding today with no news of progress towards peace from yesterday’s meeting between Russian and Ukrainian leaders. Rains moving through the Eastern and parts of the Western Cornbelt could delay fieldwork and early planting in certain areas. Corn futures are also watching South America’s second crop corn – the safrinha crop. Brazil’s crop is still poorly early in the planting cycle, but recent rains could improve its quality. May corn closed 11 and 3/4 cents higher at $7.38, and July corn closed 11 and 1/2 cents higher at $7.20.

Wheat futures closed sharply higher watching failing peace talks in the Black Sea region. The complex was more than 30 cents higher near the open before backing off early highs. The market is keeping its volatile trend this week while watching the Black Sea region. A back and forth between peace talks in the region and Russian advances will likely continue to send the market sharply higher and lower from day to day. Ukraine’s ag minister last week said he expects only about half of the country’s crops to be seeded because of the conflict. That will add strength to the market moving forward. May Chicago wheat closed 13 cents higher at $10.27 and 1/4, May Kansas City led the nearby complex – gaining 20 cents to closed at $10.44 and 1/2, and May Minneapolis closed 15 cents higher at $10.58.