Market News

Soybeans, corn, wheat up Friday, still lower on week

Soybeans were higher on commercial and technical buying. Traders bought back some of the recent losses with help from strength in soybean products and the bullish crush margins, but still finished the week lower. Those margins and commercial buying also propped up bean meal and oil and grains and oilseeds in general saw support from the lower dollar and higher crude oil. The trade was also watching weather in South America, which generally favors central and northern Brazil over southern Brazil and Argentina. Safras e Mercado pegs Brazil’s crop at 154.5 million tons, up 3 million from their prior projection. The U.S. harvest is nearly complete and recent precipitation has boosted river levels in parts of the region, aiding interior movement. There is some talk China might be easing its zero-COVID policy, but no confirmation of any kind of Beijing.

Corn was higher on commercial and technical buying but closed the week in the red. Corn was a little oversold after the recent decline, with spillover support from that drop in the dollar and the gains in beans and wheat. Exports are slow, but feed and fuel demand are strong and the national cash basis is solid. That export competition has largely come from Ukraine and South America, with higher trade in the dollar an additional bearish factor for global demand. Russia’s Ag Ministry says that nation has harvested 7.7 million tons of corn. Ukraine’s Ag Ministry reports their corn harvest is 39% complete with a running total of 9.6 million tons. Stateside, there’s a significant chance that some of the corn still in the ground in the northern U.S. Plains and Midwest will stay there until spring following this week’s snow and cold snap.

The wheat complex was higher on commercial and technical buying Friday, helping blunt some of the week’s losses. The complex was watching a cold snap without snow cover in some areas that could damage U.S. winter wheat. The crop is already in historically poor condition for this time of year and could emerge in even worse shape next spring. The situation in the Black Sea region continues to be a big question mark. Negotiations are reportedly underway between Russia and the U.N. with Moscow saying it will leave the grain export corridor agreement if certain concessions are not met. Russia’s initial threat to leave the agreement came in late October after Moscow alleged Ukraine used a civilian vessel to launch a drone strike, which has been denied by Kyiv. Russia’s Ag Ministry says that nation has harvested 105 million tons of wheat. India says it will release wheat from state reserves and suspend its export tariff to lower domestic prices. China’s wheat prices are at record levels due to slow farmer selling and supply chain issues impacting movement. Crop quality is a concern following recent heavy rainfall in eastern Australia.