Chicago soybean and corn prices increased due to weather concerns in Argentina and robust export demand. While soybeans rose slightly, the overall weekly performance decreased. Corn prices climbed for three sessions, supported by exports, and wheat futures also gained on export strength despite a cautious market influenced by geopolitical factors.
On Friday, Chicago soybean futures experienced a rise for the second consecutive session, aided by weather concerns in Argentina, a major supplier. However, the week closed with a decline attributed to weak exports and the rapid harvest in Brazil. Corn prices also increased for the third session due to strong export demand and weather issues in Argentina, while wheat futures rose on solid export numbers and freeze threats in growing regions.
The most-active soybean contract on the Chicago Board of Trade climbed 0.05% to $10.31 a bushel as of 0150 GMT but marked a weekly drop of 1.81%. Conversely, the Chicago corn contract increased by 0.05% to $4.94 a bushel, resulting in a weekly gain of 1.2%. Wheat prices also rose by 0.69% to $5.82 a bushel, continuing a six-week gain streak.
Weather conditions in Argentina, particularly the hot and dry climate, have impacted crop yields, thus elevating soybean prices. Rains in February have helped relieve some dryness, as indicated by the Buenos Aires Grain Exchange, while heavy rainfall could further assist crop recovery. Brazil’s crop agency Conab has reduced its soybean supply forecast to 166.01 million tons but increased corn estimates to 122.01 million tons due to “irreversible crop losses” attributed to drought.
The USDA reported weekly net soybean exports of 209,800 tons, which fell below market expectations, while corn sales reached 1,999,100 tons, exceeding forecasts. The grain market showed caution as traders awaited updates regarding tariff negotiations with key partners and U.S. political efforts aimed at resolving the Ukraine conflict, with potential ceasefire impacts on grain exports.
This week, USDA reported wheat exports at 606,400 metric tons, surpassing trade estimates. Additionally, Saudi Arabia’s General Food Security Authority has initiated a tender for 595,000 metric tons of wheat. Traders are also monitoring potential freeze risks to winter wheat locations in the U.S. Plains and Black Sea, with snow forecasts providing possible protective measures.
On a separate note, a gauge of global stocks reached an intraday record, alongside a drop in U.S. Treasury yields, amidst encouraging inflation reports, propelling expectations for temperature moderation in the Federal Reserve’s economic measures.
In summary, rising soybean and corn prices in Chicago are driven by weather-related issues in Argentina and strong export demands. The market remains cautious in light of international negotiations that could impact future exports, while wheat prices climbed due to robust export activity and freeze threats. Overall, the grain market reflects a dynamic interplay of weather conditions, export performance, and geopolitical factors.
Original Source: www.tradingview.com
