Market Update: Soybeans Rise While Corn and Wheat See Declines

As the trading day came to a close, recent movements in agricultural commodities reflected a mixed market. March corn prices fell by 4¾ cents, settling at $4.30¼ per bushel. In contrast, March soybeans experienced a slight increase, rising by 3 cents to $11.15¼ per bushel. Meanwhile, March CBOT wheat saw a decline of 5½ cents, priced at $5.29¾ per bushel.

Notably, Kansas City wheat decreased 7¼ cents to $5.31¼ per bushel, while Minneapolis wheat was down by 6 cents at $5.76½ per bushel.

Market Insights from Industry Experts

Jamey Kohake, a senior risk manager with Pinion, commented on the market trends: “There is a very strong opening in row crops. Beans lead the way on expectations of China purchasing another 8 million metric tons of soybeans relatively quickly, and corn followed along. Both saw liquidation and farmer selling kick in, then closed mixed as the South American harvest is ongoing with no major weather threats.”

Cattle and Hogs Market Movements

In livestock trading, April live cattle increased by $1.65 to $237.25 per hundredweight (cwt). March feeder cattle also saw a rise, up $3.35 to $367.42 per cwt. However, April lean hogs experienced a slight drop, falling by 42 cents to $97.95 per cwt.

Crude Oil and Stock Market Impact

At 3:35 p.m. CT, March crude oil traded up 23 cents, reaching $63.70 per barrel. In terms of equities, the S&P 500 Index gained 133.90 points, and the Dow Jones Industrial Average rose by 1,206.95 points. Conversely, the March U.S. Dollar Index fell by 206 points.

Morning Profile: Markets Open Mixed

In pre-market trading at 9:00 a.m. CT, March corn dipped 1¾ cents to $4.33¼ per bushel, while March soybeans gained 11 cents to $11.23¼ per bushel.

CBOT wheat showed a slight decline of 2¾ cents, priced at $5.32½ per bushel. Kansas City wheat dropped 2¾ cents, and Minneapolis wheat fell by 3¼ cents.

Karl Setzer, a partner with Consus Ag Consulting, highlighted that “futures have been on both sides of unchanged overnight as consolidation takes place ahead of the weekend. We are also seeing a little more positioning for next Tuesday’s scheduled release of the monthly WASDE report.”

Looking ahead, it’s anticipated that there will be a slight decline in ending stocks, although not at a level that would significantly impact stocks-to-use ratios. The stabilization of outside markets, following Thursday’s collapse in cryptocurrencies, has drawn managed money into the market, though this inflow is expected to slow.

Conclusion

The evolving dynamics in the agricultural market, affected by various internal and external factors, indicate ongoing volatility. As traders adjust their strategies, the upcoming WASDE report will be critical in shaping market expectations.

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