Market News

Sharp grain, oilseed futures losses continue

The soybean complex closed sharply lower on the day. Russian – Ukrainian peace talks drove the market downward as it could mean more sunflower oil and other products become available to the global market. U.S. soybean export sales were solid last week and Monday; traders are anxious to see higher soybean export inspections to match. Private Brazilian soybean production estimates are continuing to fall, giving U.S. soybeans more opportunity on the global market. Demand remains a positive for the market despite widespread COVID related shutdowns in China. Yesterday, the trading partner’s largest city, Shanghai, instituted a lockdown. May soybeans closed 21 and 1/4 cents lower at $16.43, July soybeans ended the day down 23 cents at $16.23 and 3/4, May soybean meal traded sharply lower Tuesday – losing $12.90 to finish the day at $466.00, and soybean oil closed 79 points lower at $71.66.

Corn futures closed sharply lower as peace talks between Russia and Ukraine picked up. The two sides met in person for the first time in weeks. Grain markets are saw a snowball effect from the peace talks; as wheat and crude oil trade lower, corn is pressured further by their losses. Dramatic swings in the market are likely to be amplified as computers trade on trends. A recent lack of Chinese purchases of U.S. corn has traders looking to take profits now. Support could return to the market if Ukraine is unable to plant a decent corn crop for this growing season. May corn closed 22 and 1/4 cents lower at $7.26 and 1/4, July corn closed 22 cents lower at $7.08 and 1/2.

The wheat complex closed sharply lower on profit taking as Russia and Ukraine met in Turkey for peace negotiations. The market did regain some early session losses with trade nearly hitting limit down. The complex still saw about a half limit downward move with the focus on the Black Sea region. U.S. wheat exports are behind on the year adding to the downward pressure in the market. There could be opportunity for exports to China moving forward if Ukraine is unable to meet its export agreements. Drought concerns negatively impacting U.S. wheat in the Western Plains is limiting some of the losses. May Chicago wheat closed 42 and 3/4 cents lower at $10.14 and 1/4, May Kansas City wheat led the nearby complex down – losing 46 cents on the day to close at $10.24 and 1/2, and May Minneapolis wheat closed 36 and 1/2 cents lower – rebounding nearly 20 cents from its low – to finish the day at $10.43.