Another solid day for soybeans, corn, and wheat
Soybeans finished Monday higher, stringing together back-to-back days of higher business. Soybeans found support from strength in products and the broader markets. The market is also anticipating the data of Friday’s Prospective Plantings and Grain Stocks reports from the USDA. While Brazil’s record soybean harvest is well past the mid-point, there are a lot of eyes on Argentina. The estimated crop is dismal and there could be further cuts to yields coming.
Corn futures ended the day higher as another round of export sales was reported. This was the ninth corn export sale in the last two weeks and the first not identified as China (it was marked for unknown destinations). Brazil’s second crop corn is currently being planted and there is less rain hitting central Brazil, raising concerns the rainy season may be drawing to a close. There is some rain in the forecast for southern Brazil and Argentina, but it will likely be too late to help the dire conditions of that crop.
The wheat complex ended the day higher as the weather continues to be one of the big stories impacting it. There isn’t much rain in the forecast for the southwestern Plains and temperatures have been below freezing, putting even more pressure on the Hard Red Winter wheat crop. Weather conditions are much better for most of the SRW crop. Spring wheat could see a later planting date as there’s still a lot of snow that needs to melt. Traders continue to watch what’s happening in the Black Sea region as it has the potential to throw some added curveballs to the market. U.S. wheat stocks are the tightest in years, with quarterly supply numbers out on the 31st.