Market News

Soybeans move lower heading into Friday

Soybeans closed lower as contracts remain under pressure from the wetter-than-anticipated forecast for Brazil.  Rains are expected to move in later than originally thought but now hang around into January.  Love moves in soybean products, soybean meal, and oil, were also adding pressure to prices.  The transportation woes, specifically the rail closures going into Mexico.  Crop conditions remain in excellent condition in Argentina and more rain is expected.  The Buenos Aries Grain Exchange has 69 percent of the crop planted, and just 3 percent of the crop was rated in poor condition.  USDA’s export sales report should have been a positive, but traders shrugged it off. 

Corn closed higher on Thursday despite concerns about transportation issues.  The rail closures into Mexico at Eagle Pass and El Paso, Texas are hindering grain shipments in at least 6 states.  There were some positive notes in this week’s export sales report, but delivery could be problematic if the rail issue isn’t resolved and if drought continues in the Panama Canal region.  Traders continue to watch weather concerns in South America. There is more rain in the forecast for the dry parts of central and northeastern Brazil.  Argentina’s corn crop, like its soybeans, is in decent shape.

The wheat complex was mixed.  U.S. wheat continues to face challenges on the global market as Russian wheat remains at a competitive advantage.  While there are still drought concerns in the U.S., rains are in the forecast for much of the HRW and SRW wheat areas.   The lower U.S. dollar is also beneficial.