Soya Bean and Corn Markets Fall in the US

  • May 9, 2023
Soya Bean and Corn  Markets Fall in the US

Tuesday saw significant declines in Chicago soybean and corn markets due to the swiftly moving U.S. planting season, while wheat prices dropped as a result of plentiful supply throughout the world and favorable weather predictions that outweighed the possibility of a war-related Black Sea corridor. Markets for grains were retreating from two-week highs reached on Monday, when uncertainty about the fate of the Black Sea corridor agreement had helped to bolster prices.

A stronger dollar and a drop in crude oil prices also restrained grain prices. The U.S. Department of Agriculture (USDA) announced maize and soybean planting progress that exceeded market expectations after the end of trading on Monday, with the rate of soybean seeding being the second quickest on record.

The USDA also reported that in the week ending May 7, the good-to-excellent ratings for the drought-affected U.S. winter wheat crop increased by 1 percentage point to 29%. The lowest good to exceptional rating for this time of year since 1996 was shared by that year and 2022. However, the week's worth of rain predicted after recent rains was tamping down worries.

Commerzbank analysts said that the upward trend in wheat market prices "appears to be losing momentum already." With the exception of Spain, Europe has seen a lot of rainfall, which has improved crop prospects and encouraged investors to downplay the possibility that Russia could withdraw from the deal governing the Black Sea route.

The United Nations said no ships were inspected on Sunday or Monday under the deal that allows Ukraine to ship grain by sea. By May 18, Moscow had threatened to renege on the accord, which is supported by the UN and Turkey. Russian Deputy Foreign Minister Sergei Vershinin was cited as stating on Tuesday that a high-level four-way discussion on the Black Sea grain agreement would take place in Istanbul on May 10–11.

Even though the wheat markets are now well-supplied, Commerzbank warned that any halt of Ukrainian supplies "would not be entirely irrelevant."

By 1133 GMT, the Chicago Board of Trade's (CBOT) most active wheat contract was down 1.3% at $6.45-1/4 a bushel. It reached a two-week high on Monday before closing lower. After achieving a two-week high in the previous session, CBOT was 0.4% down at 14.27-1/2 a bushel. Following an 11-day high on Monday, corn fell 1.1% to $5.90 per bushel.