US: Corn sees slight bounce, soybeans able to close mixed

Published Mar 16, 2023

Tridge summary

Soybean prices were mixed due to uncertainties in the broader market and Brazil's record harvest, but technical indicators and solid domestic demand suggest a potential rebound. Argentine crush facilities are operating at low capacity due to a drought, which could impact global soybean product exports. Meanwhile, Brazil plans to increase its domestic crush to offset the shortfall.

Corn prices were modestly higher due to recent demand from China and short covering, supported by improved soil moisture conditions despite potential delays in planting due to midwest wetness. The International Grains Council forecasts a slight decrease in world corn production to 1.15 billion tons for 2022/23.

Wheat prices were mixed, with some terminals experiencing modestly lower prices, despite expected precipitation in the southern Plains and a more favorable long-term outlook with an anticipated El Nino pattern. The Black Sea Grain Initiative is set to expire, maintaining a significant price advantage for Russia and Ukraine in the market.

In terms of sales and shipments, soybean export sales rebounded, with China and Germany as the leading buyers, while corn sales were 1.24 million tons, down slightly but larger than average. Additionally, the article discusses the impact of weather conditions on crop planting and growth, including in Brazil and Argentina, and provides updates on quarterly grain stocks and ethanol production.

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

Original content

Soybeans were mixed on spread trade and oversold signals. Beans were down for most of the session on uncertainties in the broader market and the lower trend in bean meal. There’s also been pressure from Brazil’s advancing record harvest. On the bull side of things, beans are due for a bounce on a technical basis, crush margins are good, and domestic demand is solid. Additionally, it looks like the record crop in Brazil might not be enough to make up for the losses in Argentina. Argentina’s crush facilities are reportedly at their lowest operating capacity ever because of tight supplies tied to the ongoing drought. Argentina is typically the world’s largest exporter of soybean products. Brazil’s ABIOVE says that nation plans to increase its domestic crush to account for some of the shortfall. The International Grains Council sees 2022/23 world production at 370 million tons, 8 million less than last month on the losses in Argentina, with 2023/24 production at 399 million tons. U.S. ...

Source: Brownfield Ag