AFB Grain-Soybean Close: Wheat, Soybeans Fall, Corn Mixed
Soybeans sold off hard today. Rains in Argentina are improving yield prospects there. Technical selling was also a factor. U.S. acreage is widely expected to be up from 2013. If these acreage gains and normal yields are realized the tight soybean supplies we continue to discuss would likely be solved. With global stocks already at comfortable levels, if U.S. stocks were to increase it would open the downside risk in the market. March has a downside objective of the January low of $12.62 ½.
Wheat prices fell again today, as export inspections were less than trade expectations. Disappointing exports combined with the selloff we saw in soybeans pushed wheat to new contract lows. Large global supplies and weakness in outside markets are likely to continue to push wheat prices lower.
Corn prices closed mixed today. Nearby contracts strengthened as today’s export inspections report beat trade expectations. However, the September contract and beyond saw declines as improving weather in South America led to double digit declines in soybeans. Look for the corn and soybean contract for the fall to follow each other closely in the coming weeks as the market works to ensure adequate corn and soybean acreage is planted in 2014.
|Cash Bids||Stuttgart: 1311||Pendleton: 1311|
|New Crop||Stuttgart: 1099||Pendleton: 1124|
This week’s news in agriculture from Agfax Media.