Market News
Wheat futures bounce back as Black Sea tensions continue
The soybean complex traded lower Tuesday with softness hitting soy oil especially. May beans closed 11 and 3/4 cents lower at $16.58 and July beans were 11 cents lower at $16.35 and 3/4. Sharp drops for crude oil guided the market downward. Soybean exports are a mixed bag as there was a near record amount of delivery last week but lower inspections totals than average this week for new crop beans. Lower inspections coupled with fears of Chinese energy use concerns due to COVID related shutdowns could continue to weaken soybean futures throughout the week.
The corn market saw mixed business due to spread adjustments. May corn closed nine and 3/4 cents higher at $7.58. The July contract closed four and 3/4 cents higher at $7.23 and 1/4. The nearby contracts rebounded after losses Monday watching peace talks between Russia and Ukraine. Traders seemed to be focus more on actions than words as Russian aggression in the Black Sea region continues. Upward nearby corn trade is being limited by Chinese demand concerns as increased COVID-19 lockdowns hit the trade partner – those factors and limited export inspections this weak are pushing down deferred contracts. Decreased demand for gasoline as its price rising could add downward pressure into the corn market over time as driving decreases lowering ethanol use.
Wheat trade came off a mixed session Monday with losses in the Chicago contract but gains for Kansas City – Minnesota wheat futures were modestly lower moving pressures. The complex turned sharply upward as Russian aggression in the Black Sea region continues. Expect traders to take any ‘peace talks’ with a grain of salt until attacks physically stop in the region. May Chicago closed up 58 cents at $11.54 and 1/4, May Kansas City closed 57 and 1/2 cents higher at $11.57 and 1/2, and Minneapolis wheat futures for May closed 40 cents higher at $11.10 and 1/4.
