Commodities trade mostly sideways
Soybeans were softly higher Tuesday with a mixed complex from lower soybean meal. May soybeans were 5 and 1/2 cents higher at $16.96 and 1/2, July soybeans closed 6 and 1/2 cents higher at $16.78 and 3/4, soybean meal closed $4.50 lower at $476.80, soybean oil closed 83 points higher at $74.54. USDA announced the sale of 240,000 metric tons of U.S. soybeans to unknown destinations for the current marketing year. Soybean futures are keeping an eye on the global demand and supply picture. Demand from China remains a concern with scattered COVID lockdowns even though the trade partner has said it will continue importing products. The market might see small adjustments throughout the day finding its price after Argentina increased its tax rate on soybean product exports. U.S. soybeans are holding on to a light edge on price in the global market. Even so, export inspections continue to be below desirable levels. Rain in South America is limiting upward action. The market has been trading sideways for much of the day awaiting a strong signal to trade off.
Corn closed mixed on spread trade. May corn closed 3 and 1/4 cents lower at $7.53 and July corn closed 1 and 1/2 cents higher at 7.29 and 3/4. The corn market continues to be fixed on tensions between Russia and Ukraine. The longer the conflict continues, the more likely that Ukraine will not have any notable corn production. Rainfall in Brazil and Argentina has been adding downward pressure into the market, especially for the nearby contracts. Poor weather in the southern U.S., like Texas, is interrupting early planting. the temporary shut-down of the Canadian Pacific Railway limited fertilizer movement into the U.S, that could be having some light impact on the overall market. The railway reopened Tuesday. 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.
Wheat was mixed on the day with widespread moisture in the Western Plains. The May Chicago contract is the only one that closed lower. May Chicago was 1 cent lower at $11.16 and 1/2, May Kansas City closed 3 and 1/4 cents higher at $11.16 and 1/2, and May Minneapolis closed 7 cents higher at $10.95 and 3/4. The market hasn’t swung too far on the day with limited news coming out of the Black Sea region. The market saw limit up and near limit down trade last week between Russian attack on Ukraine near the Polish boarder and peace talks between the nations. 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.