Grains and oilseeds are lower on Wednesday following the overnight session. The U.S. dollar took a breather from recent gains after rising to a three-month high on Tuesday. Crude oil is moderately lower following yesterday’s sharp gains. Stock futures are higher after rebounding from their lows on Tuesday.
CORN
The nearby corn futures contract attempted another run above the 200-day moving average on Tuesday. Prices failed to hold onto gains reversing much of the move and closing just 0.75 cents higher at $4.46 ½.
Prices further dipped below the 100-day moving average overnight, and below the $4.44 support level, which had largely contained price gains throughout the winter.
The USDA reported this morning the flash sale of 125,000 MT of corn sold to unknown buyers for the current marketing year. U.S. corn remains competitively priced on the global stage.
That remains apparent in weekly export data despite last week’s disappointing print.
Weather conditions remain broadly favorable for Brazil’s Safrinha planting and crop development. Eric Snodgrass with Nutrien Ag Solutions alluded to some risks of drier conditions over the next few months. However, there are no apparent risks to crop production yet.
SOYBEANS
Soybean futures have been the most resilient among the grains and oilseeds amid the conflict with Iran. The nearby May contract traded 6.5 cents higher on Tuesday to close at $11.70 ½ a bushel.
Prices did close below mid-range for the day after struggling to hold near their recent highs. Soybean oil futures remain near contract highs, with crude oil lending some strength.
Bloomberg reported that China desires to have steady relations with the U.S. ahead of a key summit between the nations’ leaders.
President Trump called for insurance companies to continue insuring shipments through the Strait of Hormuz, a move that China urged for earlier in the week.
WHEAT
Wheat futures traded in a wide range on Tuesday. May Chicago futures ultimately closed 3.25 cents lower at $5.74. Prices pushed lower again during the overnight session, as market exuberance continued to cool.
The reversal from $6 could continue to add pressure. A test of the 200-day moving average is likely. Prices had previously held support after an initial move above the level last week. KC wheat futures may offer a similar test of support in the coming days.
Data from UkrAgroConsult shows that global wheat prices have largely been rising over the past month, with HRW wheat leading the way.
Statistics Canada will release its latest acreage update tomorrow for all wheat acreages. A pre-report survey expects acreage for the upcoming season to be at 26.4 million, down from 27.47 million last year.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.