Market News

Grains move in different directions to open the week

Soybeans are lower on profit taking. The market was also being driven down by sharp crude oil losses. The soybean market saw strong support last week with USDA’s estimated soybean ending stocks falling 25 million bushels from last month to 260 million in its World Ag Supply and Demand report Friday. And the Buenos Aires Grain exchange recently lowered its soybean ratings further, adding support into the market. CONAB, Brazil’s equivalent of the USDA, recently lowered its soybean production estimate to 122.4 million metric tons. Weather in South America remains dry with extreme drought conditions in Argentina and below average moisture in Brazil. May beans closed 33 and 3/4 cents lower at $16.55 and 1/4, July soybeans ended the day down 27 and 1/4 cents at $16.40 and 3/4, May soybean meal closed sharply lower – down $9.10 at $459.10, and soybean oil closed down 82 points at $74.30.

Corn closed mixed on spread adjustments – trading sideways for most of the session with positive export news on the day. Another large U.S. corn export sale to China, this one for more than 1 million metric tons, is being supportive to the market but it might have been already factored in with the sale rumored last week. Most of today’s announced sale is for delivery this marketing year. The market is also watching diminishing South American crop ratings from continued dry weather. Scattered rains and snowy mixes moving through the Midwest could delay early planting but also recharge dry soils in some areas. Estimated corn ending stocks were higher in USDA’s recent global supply and demand report, up 4.5 million metric tons, limiting upward momentum. The Russian – Ukrainian conflict in the Black Sea region continues to be supportive for corn futures. Recent peace talks between the countries have been unproductive and tensions remain high. The Black Sea region is responsible for about 30 percent of global ag exports year to year. Russian fertilizer exports to South America are set to end the first week of May. StoneX says the lack of product moving from Russia to Brazil could hinder crop production further, which would be supportive to the market. May corn futures closed four and 1/4 cents lower at $7.64 and 1/2, and July corn closed two cents lower at $7.58 and 3/4.

Wheat futures closed higher on the day. The complex is continuing to gain strength from low expected ending stocks following Friday’s USDA report. USDA adjusted it’s expected wheat ending stocks to 678 million bushels, 25 million more than a month ago but with lower exports and lower feed use. Tensions between Russia and Ukraine are remaining high with peace talks up to this point making little to no progress. Light exports have been able to move out of the Black Sea region, though. While Ukrainian wheat production estimates are being pegged at nearly half of normal, wheat prices might slide if more product becomes available to the global market. But the U.S. western plains remain dry, diminishing crop expectations and supporting the market, which was reflected in Monday’s USDA crop progress and condition report. May Chicago wheat futures closed 29 and 3/4 cents higher at $10.81 and 1/4, May Kansas City wheat closed 34 and 3/4 cents higher at $11.41 and 1/2. May Minneapolis closed up 14 and 3/4 cents at $11.42.