Market News

Higher dollar puts pressure on soybean futures

Soybeans are lower partly because of profit taking, giving back most of Thursday’s gains. There was some downward pressure from the stronger dollar, but DTN also cited late-season South American soybeans that weighed on the market. There’s concern about reduced U.S. soybean quality this year. If South American quality is up, it raises competitive issues. Biodiesel production is expected to grow and China may need more soybeans.

Corn was steady to higher for much of the Friday session with light follow-through buying. Corn posted a late rally Friday. DTN pointed out a factor that could continue to hold the rally in check is the increasingly bearish short-term commercial outlook. The world corn market is active. Japan and Taiwan are buying, but it’s Ukrainian corn. Weakness in the dollar will be needed to improve U.S. exports.

For much of the Friday session, wheat was mixed, without much change in Chicago and Kansas City. Both gained a little strength in the later minutes of trading. Minneapolis was mostly higher because of tight spring wheat supplies. The higher dollar limited any serious gains in wheat. Most U.S. exports were cheaper classes of wheat, while higher-grade milling wheat is in tighter supply. The hard red winter wheat area has gotten badly needed rain. There’s plenty of feed wheat to make up for corn shortfalls.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!