Grain futures close lower across the board
Soybeans closed lower. May bean closed nine and 1/2 cents lower at $16.49 and 1/4, and July beans closed nine and 3/4 cents lower at $16.26. It was an up and down day for the complex with mixed movement for most of the day until everything closed some degree of down. The Fed raised short-term interest rates for the first time since 2018. Mixed news from China led to early losses that mostly rebounded by midday but then fell again by the close. The trade partner says it will look to continue soybean purchases even with scattered COVID lockdowns. U.S. beans are competitively priced in the global market making them well positioned for trade. The market might trade sideways while it waits for a signal on the trade market. Crude oil rebounded early in the trading after losses earlier this week before turning lower in afternoon trading – adding downward pressure for soybean oil.
Corn closed lower continuing over-night losses from ongoing peace talks between Russia and Ukraine. May corn closed 28 cents lower at $7.30, and July corn closed 26 and 1/4 cents lower at $6.97. The market will likely continue to see shifting market pressures out of the Black Sea region between peace talks and Russian assaults. The U.S. corn export outlook seems to be moving in a positive direction with the continued lack of shipments from Russia and Ukraine and worsening crop conditions in Argentina. The market is closely watching ethanol margins as they continue to be tight. Concerns of increasing gas prices could limit driving and cut down ethanol demand.
The wheat complex continues to be a roller coaster seeing losses on news of progressing Russian – Ukrainian peace talks. May Chicago traded limit down 85 cents to $10.69 and 1/4, May Kansas City closed limit down at $10.72 and 1/2. May Minneapolis wheat closed 60 cents lower at $10.50 and 1/4. Ukrainian President Volodymyr Zelensky implied the war could be over by May sending bearish signals to the complex. A lack of trade news and reports of rain are also putting downward pressure on the market. But wheat conditions in the Western Plains remain poor, adding to fears of tight supply. A lightly weaker U.S. dollar is making U.S. products more competitive in the global market across the board.