News

Wheat futures sharply higher following poor USDA crop rating

Soybean futures closed sharply higher – picking up momentum out of the gate, backing off the session highs midsession, and returning near the high by the close. The market is gained support watching crude oil futures for most of the day before crude oil closed lower with losses coming after the commodity market close. Expected crop reduction estimates in USDA’s coming World Ag Supply and Demand report for South American crops is being supportive to the complex; the report is out Friday. The week’s forecast expects dry conditions to continue in Argentina and moderate rainfall in northern Brazil. May soybeans closed 28 and 3/4 cents higher at $16.31, June soybeans ended the day up 25 cents at $16.14, May soybean meal closed $10.80 higher at $465.90, and May soybean oil closed seven points higher at $72.41.

Corn futures closed higher on the day. The market continues to hold at elevated prices watching ongoing advances by Russia into Ukraine. Earlier this week, Russian President Vladimir Putin threatened any further anti-trade sanctions from NATO countries would be reciprocated. The market would likely see sharp adjustments with any concrete steps toward peace or impactful Russian aggression. Corn is gaining support with speculated corn sales to China coming to fruition. USDA announced the sale of more than 1 million metric tons of corn to China Monday. Nearly 700,000 metric tons of the sale are for delivery this marketing year and about 400,000 for next marketing year. USDA’s recent Prospective Planting report was mostly supportive to corn futures and could continue to add strength as planting season gets underway. Corn planting is on pace with last year and the five-year average with two percent of the crop planted. Texas’ crop is past halfway planted, Kansas is at two percent and Missouri is at one percent. May corn futures closed nine and 1/4 cents higher at $7.59 and 3/4, and July corn closed at $7.48 and 1/4 – gaining nine cents on the day.

Wheat was sharply higher on Tuesday, gaining upward momentum from USDA’s Crop Progress and Condition report showing wheat in a bad state Monday. Thirty six percent of the winter wheat crop was rated poor to very poor. Dry weather west of the Mississippi River, especially in Nebraska, Kansas, and South Dakota, is continuing to add upward momentum to the market. Russian aggression in the Black Sea region continues to support the market. Ukrainian President Volodymyr Zelensky addressed the U.N. this morning requesting action from the group signaling the conflict could be far from over. May Chicago gained 35 cents by the close – finishing at $10.45 and 1/4, May Kansas City led the way – closing 45 cents higher at $10.82 and 3/4, May Minneapolis remains the premium contract of the three – trading 26 and 3/4 higher on the day to close at $11.11 and 3/4.