Soybean and corn futures on the Chicago Board of Trade (CBOT) ticked higher on Wednesday as signs of stronger demand and positive yield forecasts from the ongoing Pro Farmer crop tour lent support to prices. The most-active soybean contract rose 0.2% to $9.77-1/2 a bushel, while corn edged up 0.4% to $3.99-3/4 a bushel. Wheat also saw a 0.3% increase, reaching $5.58-1/4 a bushel, as concerns about a smaller-than-expected Russian harvest added to the upward pressure.
See: Soybean on the rise as seen on the VT Markets app.
Market participants observed increased buying interest as prices remained attractive, with supplies of both corn and soybeans ample enough to limit any sharp price jumps. The Pro Farmer crop tour, a key event in assessing U.S. crop conditions, revealed promising results. Nebraska’s corn yield prospects and soybean pod counts have reached levels not seen since 2021, surpassing both last year’s figures and their three-year averages. In Indiana, soybean pod counts reached their highest in 22 years, while corn yield prospects hit a three-year high.
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These robust projections from major U.S. grain and oilseed-producing states suggest that the market may continue to see steady demand for these commodities. Export sales also provided a boost, with the U.S. Department of Agriculture reporting significant sales of U.S. soybeans to China and Mexico. Specifically, 132,000 metric tons were sold to China and 239,492 metric tons to Mexico for the 2024/25 marketing year.
Meanwhile, Argentina’s corn crop for the upcoming 2024/25 cycle is expected to cover only 6.3 million hectares, a 17% decrease from the previous cycle. This reduction is due to increasing pest and weather concerns, which may tighten supply in the global market. Additionally, Argentina’s agriculture sector faced a potential disruption as a cargo ship was quarantined in the Parana River over a suspected case of mpox, raising concerns about possible delays in exports.
In Russia, the world’s largest wheat exporter, the Agriculture Minister Oksana Lut acknowledged that the country’s wheat harvest might fall short of earlier forecasts due to the adverse effects of bad weather earlier in the year. This development could further impact global wheat supplies and sustain upward pressure on prices.
Commodity funds were active in the market, with net buying observed in soybean, soymeal, soyoil, and wheat futures contracts, while corn futures saw net selling. This activity indicates that traders are positioning themselves for potential price movements based on the latest crop and demand data.
As the market continues to digest these developments, prices for soybeans and corn may see gradual increases, driven by demand and yield expectations. However, with ample supply, any significant upside could be limited unless further supply-side disruptions emerge.
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