Grain futures trade lower following overnight losses
Soybean futures traded lower on soft weekly export sales and forecasted South American rain. Soybean meal traded mostly sideways on the day, staying within a dollar on either side of the open before closing higher. The complex came off strong gains Wednesday, finding strength on support from an announced export sale, South American crop expectations and opportunity on the soy oil front. Weekly export sales came in lower than traders liked adding downward pressure into the market. USDA has announced a new soybean export sale of more than 318,000 metric tons of old crop soybeans to unknown destinations for delivery this marketing year. May soybeans were 18 cents higher at $17.00 and three quarters, July beans closed 16 and a quarter cents higher at $16.82 and a quarter. May soybean meal closed 80 cents higher at $485.90, and May soybean oil closed 168 points lower at $74.29.
Corn closed lower continuing overnight losses after Wednesday’s session. The market is keeping an eye on any developments between Russia and Ukraine. Some drought relief in South America has added downward pressure into the market as traders try to get an idea of global supply tightness. Fuel demand remains a concern for ethanol use. While ethanol production remains above year ago levels, higher gas prices could keep drivers off the road – limiting the amount of gas that ethanol can be blended into. May corn closed nine and a half cents lower at $7.48 and a quarter, July corn closed six and a quarter cents lower at $7.28 and a half.
Wheat: Wheat is lower with a steady back and forth between peace talks in the Black Sea region and Russian aggression. The market is still looking to balance the impact of recent rains in the Western Plains. The likelihood of more rain drops substantially for the region after April 1st. May Chicago closed 20 cents lower at $10.85 and three quarters, May Kansas City closed 16 and a half lower at $10.95, and May Minneapolis closed six and a half lower $10.82 and three quarters. The value of the U.S. dollar remains below near-term highs, boosting the appeal of U.S. crops in the global market – which could be a positive across all commodities.