Market News

Nearby corn contracts reach the $7 mark, again

The soybean complex closed mostly higher. May soybeans closed 19 and 1/4 cents higher at $16.68 and 1/4, July beans closed 21 and 1/4 cents higher at $16.47 and 1/4. Soybean meal closed $3.90 lower at $474.10 and soybean oil closed 108 points higher at $74.63. Soybean oil is following the crude oil market which has been moving lower most of the week but is rebounding today watching ongoing Russian – Ukrainian tensions. Soybean meal is lower with concerns of crush facilities being shut down in China due to COVID-19. U.S. soybeans are competitively priced on the global market and are well positioned for trade as China announced yesterday it intends to continue importing products despite the scattered COVID related lockdowns. Long-term Chinese demand is in question with higher planting expectations for the trade partner. The loss of Ukraine’s sunflower crop remains bullish, especially for soy oil.

Corn led the higher move for grains Thursday, pushing higher after steep losses on Wednesday. May corn closed 24 and 1/2 cents higher at $7.54 and 1/2 and July corn closed 21 and 3/4 cents higher at $7.18 and 3/4. The market is being supported by continued Russian aggression as peace talks seem to be a mixed bag. Worsening corn conditions in Argentina and potential export taxes on the crop coming out of the country are propping up the U.S. corn market. A heavy ethanol supply is keeping margins thin with limited demand as drivers are on the road less, watching gas prices climb. The markets will be watching reactions to the Federal Reserve raising short-term interest rates. Expected frosts in Texas where nearly a quarter of that state’s corn crop is already planted could have a minor impact in the market. Crop conditions and planting weather will become a larger factor in the market as we enter April.

Wheat trade rebounded Thursday after steep losses the day before. May Chicago closed 28 and 3/4 cents higher at $10.98, May Kansas City closed 19 and 3/4 cents higher at $10.40, and May Minneapolis closed 28 and 3/4 cents higher at $10.79. Minneapolis wheat lead the complex for most of the day before the Chicago contract caught it just ahead of the close. While the complex was fully higher on the day, it didn’t even make up half of Wednesday’s losses. Rumblings of peace talks progressing between Russia and Ukraine caused a massive drop in the complex Wednesday, but traders somewhat returned to the market as Russian aggression in the region continued. Chances of rain in the forecast for the Western Plains might limit some upward action for wheat. Grain markets across the board continue to have a couple of wild cards that are difficult to account for: the impact inflation is having on grains and what the implications will be of the Federal Reserve raising short-term interest rates for the first time since the Boston Red Sox won the World Series in 2018.