AFB Grain-Soybean Close: Prices Drop Across the Board
Soybeans posted sharp losses today. The market continues to be focused on supply, watching the weather and crop prospects in South America and speculating about U.S. acreage. The market is bracing for demand to shift to South America, and March was the downside leader as a result. Gulf basis levels continue to drop, but so far weekly export reports haven’t shown much of a slow-down. Also, so far, Chinese cancellations that have been speculated about and expected haven’t materialized. March is back near support at $12.62 ½, and November is testing support at $11.
Wheat prices continue to put in new lows as weakness in outside markets and negative global fundamentals push prices lower. With the current out look there is little hope for a rally in wheat and a much larger chance of a continued decline to $5.00. While prices now are not good, they are likely better than what they will be at harvest this spring.
Corn prices fell today after an announcement by the federal reserve spooked the market as dollar outlook is uncertain. Additionally, weakness in soybeans and prospects of a large South American corn crop has the market concerned about large supplies in the near term. While levels remain firm, look for corn price gains to be difficult to maintain as farmer held supplies remain large. Corn prices remain in the upper end of the trade range between $4.10 and $4.35.
|Cash Bids||Stuttgart: 1299||Pendleton: 1299|
|New Crop||Stuttgart: 1088||Pendleton: 1113|
This week’s news in agriculture from Agfax Media.