Grains open week higher
The soybean complex closed higher to start the week. May soybeans closed 23 cents higher at $16.91, July soybeans up 26 and 1/2 cents at $16.72 and 1/4, May soybean meal closed $4.30 higher at $481.30 and soybean oil closed 142 points higher at $73.71. Soybeans are higher as Argentina has increased its tax rate on soy oil and meal two percent until the end of the year because of inflation. The trade competitor’s new rate is 33 percent, making U.S. soybean products more competitive on the global market. Trade demand from China remains a driving question with mixed concerns of crush facility closures while the importer has scattered COVID related lockdowns. China has also notably increased its imports of Brazilian soy products over last year. South American weather has turned somewhat favorable for the trade competitor, adding some downward pressure into the market. The nearby soybean contract finished nearly 20 cents below the top of the day’s trading range.
Corn futures traded higher ahead of the open which has carried over into standard trading hours. May corn closed 14 and 1/2 cents higher at $7.56 and 1/4 and July corn closed 15 and 3/4 cents higher at $7.28 and 1/4. The market is continuing to gain upward momentum from Russia’s continued attacks of Ukraine with advances near the Polish border last week. The longer Russian advances continue, the more likely it is Ukraine’s corn crop will not be planted. That likelihood has been amplified by the country’s push to plant cereal crops instead of corn to provide food to Ukrainian people. Ethanol stocks remain elevated as gas demand is in question with rising prices. The market continues to watch South American weather which has received scattered rains as of late. Both nearby corn contracts were able to stay within 10 cents of the top of the day’s trading range.
The wheat complex was sharply higher with the Chicago contract leading the way. May Chicago closed 55 and 1/2 cents higher at $11.19 and 1/4, May Kansas City closed 42 and 3/4 higher at $11.13 and 1/4 and May Minneapolis closed 28 and 1/2 cents higher at $10.88 and 3/4. Russian aggression directed at Ukraine continues to be the main market driver. Traders are largely returning to the market as many stepped out of the market ahead of the weekend. Rainfall in the U.S. Western Plains could limit some of the upward momentum. The U.S. dollar remains below recent highs adding value to U.S. exports on the global market. The complex backed off its highs for the day ahead of the close. The Chicago contract touched the upward trading limit before dropping nearly 30 cents by the close.