Another round of losses in soybeans, corn, and wheat in the US

Published Feb 28, 2023

Tridge summary

Soybeans, corn, and wheat prices have all seen a decline due to a combination of fund and technical selling, slower demand from Brazil's record crop, and liquidation as the month ends. Despite slower demand, domestic margins and demand for soybeans remain strong. Corn is also watching for planting in Brazil, with good midwest conditions for spring planting in the US. Wheat is technically oversold but faces bearish factors like slow export sales and the strength of the dollar. The extension of the Black Sea Grain Initiative, which allows Turkey to buy wheat from Russia and Ukraine, is a key question moving forward.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Soybeans were sharply lower on fund and technical selling. Traders liquidated positions at the end of the month with under the influence of slower demand due to Brazil’s record crop. That record crop in Brazil should cancel out drought losses in Argentina. The USDA’s updated supply and demand outlook is out March 8th, while CONAB’s new outlook for Brazil’s crops is set for March 9th. Soybean meal and oil were lower on liquidation and a lack of new export demand even as crops wither in Argentina, which is normally the world’s biggest exporter of soybean products. That said – domestic margins and demand remain bullish.Corn was lower on fund and technical selling. Corn liquidated on the first notice day for March contracts, watching second crop planting in Brazil, expecting a big crop, even if some of it is planted a little later than would be ideal. Similar to soybeans, a big enough crop in Brazil would cancel out the losses due, largely, to drought in Argentina. Midwest conditions ...

Source: Brownfield Ag