Market News

Soybeans, corn, and wheat all lower at midweek

Soybeans were lower on fund and technical selling in a narrow trading range.  Forecasts for South America look more promising for rain in the coming weeks.  Soybeans were also pressured by the drop in soybean meal and soybean oil.  There are several shipping and logistic challenges facing exports right now that aren’t helping.  There are rail issues heading into Mexico along with drought restrictions at the Panama Canal.  There are also concerns about the new policies in Argentina with the recent inauguration of the new presidential administration.

Corn was lower facing much of the same pressure as soybeans.  The closure of the two rail bridges into Mexico earlier this week by U.S. Customs and Border Protection are disrupting exports into the country.   There are at least six states, Illinois, Iowa, Kansas, Missouri, Minnesota, and Nebraska that are on hold due to the closure.  Ethanol production declined slightly on the week, but inventories are growing.  The weather in Brazil is improving as more consistent rains have returned and are forecasted to stay into January for central and northeastern parts of the country. 

The wheat complex was lower Wednesday giving back all of Tuesday’s gains and then some.  Rains are in the forecast for HRW and SRW wheat areas.  Russia continues to dominate the global market.  That will help boost soil moisture.  The trade continues to monitor winter wheat development conditions in the northern hemisphere and harvest activity in the southern hemisphere.