US: More red ink for soybeans, corn, and wheat

Published Feb 27, 2023

Tridge summary

Soybean prices have fallen due to fund and technical selling, despite Brazil's harvest being 30% slower than average, as a record crop is expected to offset drought losses in Argentina. South America is projected to produce a crop of around 5 billion bushels, which is cutting into U.S. export demand. Corn prices have also dropped due to good planting progress in Brazil and concerns about hot, dry weather in Argentina. Wheat prices have fallen due to fund and technical selling, but concerns about damage to the hard red winter crop from storms in the Plains are mitigated by beneficial precipitation in some areas. The extension of the Black Sea Grain Initiative is being questioned, with the current agreement set to expire soon.

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

Original content

Soybeans were lower on fund and technical selling. Brazil’s harvest is more than 30% complete, slower than average, but still already about 50 million tons. The record crop in Brazil should cancel out the production losses due to drought in Argentina. South America is expected to produce a combined crop of around 5 billion bushels. That’s already cutting into export demand for U.S. soybeans. Sales have slowed down, but there are relatively few unshipped bushels, which might lessen cancellations. Export inspections were down on the week and the year, but the 2022/23 pace remains ahead of 2021/22 heading into the back half of the marketing year. Last week’s top destinations were China and Mexico. The trade is also monitoring U.S. conditions ahead of widespread planting. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.Corn was lower on fund and technical selling. Corn was watching the good second crop planting progress in Brazil against the ...

Source: Brownfield Ag