On concerns about a global economic slowdown, soybean futures traded around $15.2 a bushel, down from the 7-month high of $15.55 hit on February 13.
The Brazilian soybean harvest is currently in progress and will likely supply the market for the next few months. According to Consultancy AgRural, Brazil’s soybean crop should be 150.9 million tons, the highest on record but slightly below previous projections.
However, early frosts in Argentina may further damage some crops already suffering from the worst drought the nation has seen in at least 60 years. Investors weighed the likelihood of a rise in interest rates and a slowdown in the world economy against expectations that China will increase its purchases after easing its tight economic controls.
Ahead of the US holiday weekend, soybeans, corn and wheat rise a bit
Stocks were supported by uncertainty about the future of a Black Sea grain export route, but rallies were constrained by a strengthening dollar and falling crude prices.
- March corn (CH3) finished 1-3/4 cents higher at $6.77-3/4 a bushel
- March soybeans (SH3) were up 3/4 of a cent at $15.27-1/4 a bushel
- CBOT March Wheat (WH3) closed at $7.65-1/2 a bushel, up 0.5 cents
It prompts discussion about whether Brazil’s bean crop is enough to make up for Argentina’s losses.
Although the dollar eventually fell, the initial gain in the dollar index hung over grain markets, making US grains less attractive abroad. Investors last week raised their forecasts for US interest rates, which helped the dollar.
Similar concerns about the impact of interest rate increases on demand drove the price of crude oil down. Because they serve as respective feedstocks for ethanol and biodiesel fuel, corn and soybeans occasionally track fluctuations in crude oil futures.
You are worried about the Black Sea. Next Friday marks the anniversary of the Russian invasion,” Fritz said, adding that dry conditions in some areas of the US Plains winter wheat belt provided additional support for KC hard red winter wheat futures.
The US Department of Agriculture will hold its annual Outlook Conference the following week, during which the government will present its initial projections for planting and production of major US crops in 2023. Due to the holiday of Presidents Day, most US government offices and markets are closed on Monday.
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