Soybeans strengthen as U.S. price drops below Argentina

Market News

Soybeans strengthen as U.S. price drops below Argentina

Soybeans closed higher on Monday on support from rebounding oil prices. Mixed expectations on where the EPA will set renewable volume obligations is adding some volatility into the market. U.S. soybean cost have dropped below competitor Argentina which is bullish for trade. Recent runs of Chinese and unknown soybean purchases have been supportive to prices despite lower trade last week. Concerns of emerging COVID-19 cases could slow demand for crude oil and add downward pressure in the soybean complex.

Corn’s lower movement continued Monday after last week’s losses of more than 30 cents. Limited drought relief over the weekend might help improve crop conditions in the Dakotas and elsewhere. Chinese demand is a leading question in the market giving the potential for volatile swings in prices on limited information. Slow export sales for the time being to the trading partner could suggest enough ending stocks and domestic Chinese production for the country to avoid purchasing U.S. grain. The EPA’s upcoming decision on setting renewable volume obligations has been limiting movement for now.

The wheat complex closed higher on support from a weaker dollar and trade. Minneapolis led the way up with a more than six cent gain on the September contract. September Chicago closed five and ½ higher. September Kansas City posted a moderate gain of more than two cents. The dollar’s still high value might limit near-term upward movement, though. Spring wheat harvest is starting to wrap up and export inspections are strong at nearly 658 thousand metric tons.