Corn futures are lower to start the week due to improved weather conditions in Argentina and steady planting progress in Brazil.
Brazil’s second crop corn planting in Mato Grosso, the country’s largest corn-producing state, has accelerated in recent weeks after a slow start. As of Friday, planting reached 67% complete, aligning with the five-year average but still trailing last year’s pace.
May corn futures breached technical support, falling below the 20-day moving average to start the week. Corn has not recorded consecutive closes below this level since early December.
Soybean futures are lower to start the week, following the downward trend in corn and wheat futures.
A wetter forecast in Argentina for the coming week is expected to further improve crop condition ratings, which saw a slight increase last week.
AgRural has lowered its estimate for Brazil’s soybean crop to 168.2 million metric tons from last month’s 171 million, citing lower yield projections in the south. As of late last week, Brazil’s soybean harvest was 39% complete, close to the 40% recorded at this time last year.
Wheat futures are leading the grain complex lower on Monday, following the sharp decline in Paris milling wheat, which gapped lower to start the week.
Warmer temperatures in the U.S. Plains this week are likely reducing weather risk premiums in the winter wheat markets.
Despite closing lower in three of the last four trading sessions, wheat futures remain in an uptrend and continue to hold above key moving averages.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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