Soybean futures remain below seven-month high
Because of worries about a worldwide economic slowdown, soybean futures traded around $15.2 per bushel, below the 7-month high of $15.55 reached on February 13th.
The Brazilian soybean harvest is currently under progress, and it will likely supply the market for the upcoming months. According to Consultancy AgRural, Brazil’s soybean crop should be 150.9 million tons, the most on record but slightly below earlier projections.
Early frosts in Argentina, however, may further harm some crops already suffering from the worst drought the nation has seen in at least 60 years. Investors weighed the likelihood of increased interest rates and a slump in the global economy against forecasts that China will increase its purchasing after easing its strict economic controls.
Ahead of the US holiday weekend, soybean, corn, and wheat all somewhat increase
Values were supported by a lack of certainty regarding the future of a Black Sea grain export route, but rallies were restrained by a strengthening dollar and falling crude oil prices.
- March corn (CH3) ended up 1-3/4 cents higher at $6.77-3/4 per bushel
- March soybeans (SH3) settled up 3/4 cent at $15.27-1/4 per bushel
- CBOT March wheat (WH3) closed at $7.65-1/2 a bushel, up 0.5 cent
It prompts discussion about whether the Brazilian bean crop is enough to make up for Argentina’s losses.
Although the dollar ultimately swung down, the early gain in the dollar index hovered over the grain markets, making US grains less appealing overseas. Last week, investors raised their forecasts for U.S. interest rates, which helped the dollar.
Similar concerns about the impact of interest rate increases on demand caused the price of crude oil to decline. Because they serve as the respective feedstocks for ethanol and biodiesel fuel, corn and soybeans occasionally track fluctuations in crude oil futures.
“You’re worried about the Black Sea. Next Friday marks the anniversary of the Russian invasion” Fritz remarked and added that dry conditions in some areas of the American Plains winter wheat belt provided additional support for K.C. hard red winter wheat futures.
The U.S. Department of Agriculture will hold its annual Outlook Conference the following week, during which the government will present its initial projections for the planting and production of significant U.S. crops in 2023. Due to the Presidents Day holiday, most government offices and U.S. markets will be closed on Monday.
