Soybean, corn, and wheat all higher to end the week
Soybeans ended the day mostly higher on fund and technical buying. The market is watching the South American crop as there are ongoing concerns about dry conditions in Argentina. Earlier this week the Rosario Grain Exchange lowered its estimate for soybean production and just 13 percent of that crop is rated good to excellent. Soybean meal and soybean oil were both higher on Friday, helping provide price support and crush incentive. While the trade will keep a close eye on what’s happening in South America, stateside, it’s watching early planted acreage signals.
Corn was higher on fund and technical buying. The market continues to monitor the ongoing issues in the Black Sea region. The trade is watching as the estimates for the Argentine corn crop, as it has been reduced and just 20 percent of the crop is rated good to excellent. Recent precipitation has helped recharge soil moisture in the Midwest ahead of spring, with the USDA’s planted area estimates out at the end of March. The window for U.S. corn exports is expected to open a little wider in the coming months, but that could be short-lived once Brazil’s second crop harvest gets underway.
The wheat complex ended the day higher as news of an incident in the Black Sea region surfaced. Drought remains the biggest concern in the wheat growing parts of the U.S. But there is some beneficial precipitation in the forecast. By no means will it be a drought-buster, especially as the forecast for much of the spring months in the southwestern Plains is mostly dry. he trade is waiting to see if the Black Sea Grain Initiative will be extended, with the deal set to expire in mid-March. There’s talk but no confirmation, yet, India will extend its wheat export ban. Australia is also reportedly seeing solid export movement.