Market News
Price surge resumes for corn, soybeans, wheat
Soybeans were sharply higher on commercial and technical buying. The volatility and uncertainty connected to Russia’s invasion of Ukraine continued to impact commodity and financial markets. Beans are also monitoring conditions in South America, with the possibility of further reductions in crop projections. Those declining prospects have helped U.S. exports pick up steam. China bought 136,000 tons of new crop U.S. beans and unknown purchased 120,000 tons of old crop. The USDA announced a U.S. soybean export sale on 15 of a possible 19 business days, most of that new crop and primarily to either China or unknown destinations. Export inspections fell short of 750,000 tons, down on the week and the year, with China and Japan topping the list. Soybean meal was mixed, adjusting spreads, closing well below the session highs. Bean oil was up sharply on the strength in crude oil and world vegetable oils. Ukraine is a major exporter of sunflower and canola oil.
Corn was sharply higher on commercial and technical buying, with May closing limit up, $.35 higher. Corn also responded to the wide-ranging volatility and Ukraine is the world’s fourth largest corn exporter. The U.S. is expected to fill part of that void – if exports are halted. March corn is now in delivery, with no limit, and did trade above $7 during Monday’s session. There were no deliveries reported. Some dry parts of Argentina and southern Brazil got much-needed rain over the weekend. That’s expected to benefit Argentina more than Brazil, but the big test for South American corn will be the performance of Brazil’s second crop, with planting moving faster than average. The USDA’s next round of projections is out March 9th, with CONAB’s updated outlook for Brazil scheduled for the following day. Weekly export inspections were above 1.5 million tons, but still below the previous week and a year ago. The leading destinations were Japan and Mexico. Ethanol futures were unchanged.
The wheat complex was sharply higher on commercial and technical buying, buying back big chunks of Friday’s drop. There are no official details on the status of shipping in the Black Sea region, with Russia and Ukraine combining for about a third of global wheat sales. Both nations reportedly have large amounts of unshipped previously purchased wheat. U.S. export inspections were below the prior week, but modestly above a year ago. The main destinations were Mexico and the Philippines. Nearing the final quarter of the 2021/22 marketing year, the pace of inspections remains behind 2020/21. Egypt has reportedly canceled a second wheat tender due to the lack of offers from Russia or Ukraine. Dry weather continues to be an issue in large swaths of the U.S. Plains. That’s expected to have an impact on winter wheat yields and could limit spring wheat planted area in the northern and northwestern U.S. Plains into the Canadian Prairies. Parts of the soft red winter region in the Eastern Midwest report excessive soil moisture, but that crop is in comparatively good condition.
