Market Update: Corn and Soybeans Decline Ahead of USDA Reports

As the trading day closed, March corn saw a decrease of 24¼ cents, settling at $4.21½ per bushel. Meanwhile, March soybeans fell by 13½ cents to $10.49 per bushel. This downward trend highlights the ongoing concerns regarding supply as traders anticipate upcoming USDA reports.

Expert Insights

“For corn, we begin discussions regarding the new crop, especially considering we have approximately 2.2 billion bushels to assess,” stated Angie Setzer, partner at Consus Ag Consulting. “As traders scrutinize both on-farm and off-farm stock figures, it’s crucial to identify which states possess the heaviest supply. Compared to last year, market indicators do not show an overwhelming excess in corn supply. The recent report triggered a swift negative reaction, pushing markets lower from their previous highs.”

Wheat Market Performance

March CBOT wheat also declined, dropping 6 cents to $5.11¼ per bushel. Other wheat varieties followed suit with March Kansas City wheat down 3½ cents at $5.26¾ and March Minneapolis wheat decreasing by 4 cents to $5.56.

Livestock and Commodities

In livestock markets, February live cattle rose by $1.52 to $235.25 per hundredweight (cwt), while March feeder cattle increased by $1.47 to $356.17 per cwt. In contrast, February lean hogs experienced a decline, down 87 cents to $84.42 per cwt.

Crude oil traded up by 50 cents, reaching $59.62 per barrel. Additionally, the S&P 500 Index gained 10.99 points, while the Dow Jones Industrial Average showed an increase of 86.13 points. As for currency, the March U.S. Dollar Index fell by 225 points.

Pre-Market Insights

Positive Trends Before Market Open

Prior to the market opening at 9:30 a.m. CT, signs pointed towards a rally. March corn was up by ½ cent at $4.46¼ per bushel, with March soybeans rising by 4¼ cents to $10.66¾.

According to Karl Setzer of Consus Ag Consulting, “Futures are experiencing solid growth in overnight trading as managed funds return to safer assets, including commodities. We are also observing short covering in anticipation of the USDA’s forthcoming data, which includes WASDE numbers, quarterly stocks, and U.S. winter seeding statistics. Reports indicate that soybeans are receiving support due to China booking 10 U.S. vessels last Friday.”

Wheat Trends

During pre-market trading, March CBOT wheat was up 6 cents to $5.23¼ per bushel, while March Kansas City wheat increased by 9¼ cents to $5.39½ and March Minneapolis wheat jumped by 5 cents to $5.65.

In livestock, February live cattle noted a rise of $1.65, hitting $235.37 per cwt, while March feeder cattle saw a slight increase of 5 cents to $354.75 per cwt. Conversely, February lean hogs decreased by $1.20 to $84.10 per cwt.

As the markets prepare for the opening bell, February crude oil climbed by 29 cents to $58.83 per barrel.

The S&P 500 Index, however, took a downturn, down 9.46 points, and the Dow Jones Industrial Average fell by 263.46 points. Meanwhile, the March U.S. Dollar Index dropped 330 points.

Conclusion

With the USDA reports looming, market participants are observing trends closely as they navigate the uncertain waters of commodity trading. Both corn and soybean fluctuations, alongside livestock trends, underscore the evolving dynamics of agricultural markets.

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