Market News
Quiet end to a volatile week for grains and oilseeds
Soybeans were mixed, with nearby contracts ending week modestly lower. It was an up and down day for beans, eventually falling into bear spreading. The trade’s watching harvest weather in Argentina and Brazil and while some firms have trimmed estimates, combined production is going to put a lot of beans and products on the export market. That big South American crop and China’s tariffs are expected to limit export demand at least over the near-term. Brazil’s price advantage is also a factor. Soybean meal was mixed on bear spreading and bean oil was up on a bounce in crude oil. China’s government says soybean imports for January and February were 13.61 million tons, up on the year.
Corn was higher on short covering and technical buying, with the most active months almost unchanged on the week. Corn is keeping an eye on conditions in Argentina, second crop planting in Brazil, and any new tariff news. That suspension of some U.S. tariffs on goods from Canada and Mexico should be a positive for export demand. The USDA’s updated supply, demand, and production numbers are out Tuesday, March 11th, and CONAB’s new outlook for Brazil is set for Thursday, March 13th. The trade is also monitoring conditions in the Corn Belt ahead of spring planting.
The wheat complex was lower on profit taking and technical selling, adding to the weekly losses. Drought has expanded in parts of the U.S. Plains with minimal near-term precipitation prospects. The USDA’s most recent monthly crop update showed mixed winter wheat conditions and there has been the possibility of winterkill in some areas, but both of those would be helped greatly by timely spring rainfall. Globally, dry weather is an issue in eastern Europe and the Black Sea region. France’s AgriMer says 74% of France’s winter wheat crop is in good to excellent condition. The trade’s also waiting to see what happens in the negotiations to end Russia’s war on Ukraine.
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