Despite yesterday’s breakout, corn trading is mixed at midday, with March corn closing above the 200-day moving average.
The market remains volatile due to a drier forecast for Argentina, though soil moisture levels are currently adequate. Meanwhile, weather in Brazil continues to be favorable for corn development.
Turkey has announced that its corn production will decline by 10% this season, falling from 2.4 mt to 850,000 tons due to reduced domestic production caused by dry weather conditions across the country.
Soybeans remain lower in midday trading, along with soybean meal, while soybean oil continues to trade higher.
Argentina’s dry weather continues to drive volatility in the soybean markets, with rainfall in January crucial for the continued development of crops. Meanwhile, northern and central Brazil are still experiencing favorable conditions, supporting expectations for a record soybean crop.
Over the past two days, soybean open interest has declined by approximately 22,000 contracts as short funds exit the market ahead of year-end.
All three wheat classes are trading lower at midday, following a higher movement across the board in yesterday’s trade.
An expected reduction in Russia’s wheat export quota could provide much-needed support to the wheat markets.
Russia’s IKAR agricultural consultancy has revised its 25/26 wheat export projections to 41 mmt, down from 43.5 mmt.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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