Market News
Grains mostly continue upward momentum
Soybeans have turned softly higher after a down start to the day. The market is anxious for news of soybean exports with China buying down at this time compared to last year. The last announced sale from USDA was a week ago. Soybean oil has been supported in the market as of late as buyers of sunflower oil have had to pursue alternatives while Ukrainian exports are diminished. Support for crude oil has also spilled into soybean oil futures. The market is continuing to watch weather patterns in South America as dry patterns are generally ongoing. Reports of China backing off on some COVID related restrictions is adding support back into the market by reducing the potential for export volatility. The soybean market saw strong support last week with USDA’s estimated soybean ending stocks falling 25 million bushels from last month to 260 million in its World Ag Supply and Demand report Friday. May soybeans closed five and 3/4 cents higher at $16.76, July soybeans finished the day up four and 1/2 cents at $16.65, May soybean meal closed $2.70 lower at $458.20, and May soybean oil closed sharply higher – up $2.68 at $78.11.
Corn futures closed higher with fund and technical support. The market is finding solid support from weather factors, both in the U.S. and South America. Scattered rainfall in the Midwest has largely kept farmers out of fields with planting ready to open. Ongoing drought conditions in southern Brazil and Argentina have continued to diminish the competitor’s second crop corn. Yesterday, President Biden announced the lift of summertime E15 restrictions while visiting Iowa. The move boosts corn for ethanol demand – supporting corn futures. U.S. corn continues to gain traction in the global market with China’s large purchase of U.S. corn for the second week in a row. Monday’s purchase was for more than 1 million metric tons with 750,000 metric tons for delivery this marketing year. News of Russian advances into Ukraine increasing could mean more Chinese buying of U.S. crops as the trade partner looks to limit further risk of higher grain prices. May corn futures closed seven and 1/4 cents higher at $7.83 and 1/2, and July corn closed five and 1/2 cents higher at $7.78.
Wheat futures are higher in afternoon trading after being lower to start the day. Wheat has found strong support since Friday, gaining around 80 cents for nearby winter wheat contracts. Increasing drought conditions in key wheat growing states, like Kansas and Nebraska, has been supportive to the market. USDA’s recent crop progress and condition report shows winter wheat in bad condition; 36 percent of the crop is rated poor to very poor with only 33 percent rated good to excellent. The Russian – Ukrainian war is continuing to support the market as peace talks the last few weeks have made little progress. Light exports have been able to move out of the Black Sea region, though. While Ukrainian wheat production estimates are being pegged at nearly half of normal, wheat prices might slide if more product becomes available to the global market. May Chicago closed nine and 3/4 cents higher at $11.13 and 1/2, May Kansas City remains the premium contract – closing 11 and 3/4 higher at $11.74, and May Minneapolis led the nearby complex for the day’s gains – closing 13 and 1/2 cents higher at $11.69 and 3/4.