Corn is trading higher at midday, supported by a tighter global supply outlook.
The corn market, previously focused on the improving weather conditions in South America, is now shifting its attention to the strong demand for U.S. corn. This shift is driven by the potential influence of President Trump in persuading global buyers to ‘Buy American.’ Additionally, the recent decline in the U.S. dollar has sparked a surge in demand for U.S. corn exports.
AgRural reports that safrinha corn planting is 36% complete, compared to 59% at this time last year, due to a delayed soybean harvest caused by wet weather. This delay is leaving producers scrambling to get the corn planted within the ideal climate window.
Recent strength in the corn markets suggests that traders believe tariffs on Mexico can be avoided by March 1st and that U.S. exports will not be significantly impacted.
Soybeans are trending higher at midday, with the entire soy complex gaining support from declining U.S. exports and improved weather conditions in South America.
Much-needed rains fell across Argentina over the weekend, with the 6-10 day forecast indicating the possibility of additional rainfall. This has brought much-needed relief to the soybean crop in the region.
Brazil’s weather looks to be mostly dry until late in next week. AgRural says Brazil’s soybean harvest is 23% complete compared to 32% a year ago. IMEA reports the Mato Gasso harvest is 50% done.
With soybean exports declining and weather conditions improving in South America, the potential for significant price increases in soybeans is likely to be limited.
Wheat is trading higher at midday, supported by the recent decline in the U.S. dollar and the strengthening of global grain prices.
Polar temperatures have moved into the U.S. Plains, but snow from recent and upcoming storms is expected to insulate the crops, preventing further winterkill damage—except in South Dakota, where snow cover is lacking. The weather in the Plains is forecasted to dramatically warm up after this week.
Russia is expecting another cold snap this week, but upcoming storms are expected to bring snow that will help insulate the crops. According to IKAR, Russian wheat export prices have risen by $2 this week, reaching $247 per ton. Russian wheat exports have increased for the fourth consecutive week.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
