Soybean complex moves fully higher

Market News

Soybean complex moves fully higher

The entire soybean complex is trading higher to sharply higher at midday. The market is hopeful export sales will continue after USDA announced a sale of 240,000 metric tons of old crop soybeans on Tuesday. The sale is for delivery this marketing year to unknown destinations. Russian – Ukrainian tensions are giving an added boost to the soybean oil market with the likely lack of sunflower oil coming out or Ukraine. Expected poor South American soybean production continues to give the market positive momentum.  Demand from China does remain a concern with scattered COVID lockdowns. But the trading partner has seemingly been able to keep ports and crush facilities open, allowing soybean products to go into the country. May soybean closed 22 and one quarter cents higher at $17.18 and three quarters, May July closed 19 and three quarters cents higher at $16.98 and a half.

Corn: Corn futures closed higher but came in around 10 cents below the morning highs. Continued Russian aggression toward Ukraine remains the biggest market driver. The growing likelihood of Ukraine losing substantial amounts of its corn crop this growing season is making a tight global supply outlook tighter. Ukraine’s ag minister says he expects only about half of the country’s crops to be seeded because of the conflict. Rainfall in Brazil and Argentina has been adding downward pressure into the market, especially for the nearby contracts. But the rain might be too little, too late to have a strong impact on the trade competitors’ crops. Poor weather in the southern U.S., like Texas, is interrupting early planting. Ethanol stocks remain elevated as gas demand is in question with rising prices. May corn closed four and three quarters cents higher at $7.57 and three quarters, and July corn closed five cents higher at $7.34 and three quarters.

Wheat: Wheat closed lower after an initial higher move at the open. Rain in the Western Plains continues to impact the market, but larger swings will likely come off any news 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 border and peace talks between the nations. The value of the U.S. dollar continues to fall, boosting the appeal of U.S. crops in the global market – which could be a positive across all commodities. May Chicago closed 12 and a half cents lower at $7.22, May Kansas City closed five cents lower at $11.11 and a half, May Minneapolis closed six and a half cents lower at $10.89 and a quarter.