Wheat Businesses; Corn and Soybean Planting Demand Under Pressure

  • May 26, 2023
Wheat Businesses; Corn and Soybean Planting Demand Under Pressure

Chicago corn prices declined on Thursday, dropping for the first time in four sessions, while soybean prices also declined as a result of weak demand for both commodities.

Wheat made a little gain, recovering some of the significant losses from the prior session.


* As of 00:12 GMT, the most actively traded corn contract on the Chicago Board of Trade (CBOT) was down 0.2% at $5.86 a bushel, while soybeans were down 0.1% at $13.23-3/4.

* After falling 2.6% on Wednesday, the price of a bushel of wheat increased by 0.1% to $6.06-3/4.

* The price of maize and soybeans is being hampered by China, the world's largest importer.

* According to feed manufacturers and experts, a glut of inexpensive wheat in China is replacing significant amounts of maize in the country's enormous animal feed industry. This may reduce need for imports by cutting consumption of both corn and soymeal.

* According to Ukraine, a treaty permitting secure grain shipments of food and fertilizer from the Ukrainian ports of Odesa, Chornomorsk, and Pivdennyi across the Black Sea has been essentially terminated by Russia. Russia reported that it was impossible to send ammonia to Pivdennyi through a pipeline.

Russian wheat export prices decreased once again last week as the global market relaxed as a result of ample supply, an extension of the Black Sea grain agreement, as well as regional anticipation of a reduction in export duties, according to experts.

The Buenos Aires grains market reported on Wednesday that after a catastrophic drought severely reduced harvests, torrential showers in recent days across Argentina's important agricultural areas have increased hopes for the 2023/2024 wheat crop.

* With sowing scheduled to commence in the next days, rain is essential for Argentine farmers to begin planting wheat. An increase from the 12.4 million tonnes harvested the previous season, the expected total crop is 18 million tonnes.

* According to dealers, commodity funds sold soy, wheat, and soymeal futures contracts on the CBOT on Wednesday. They were net purchasers of CBOT futures for soy oil and corn.


* On Wednesday, world equities fell as U.S. debt limit negotiations stretched on indefinitely without reaching an agreement. This contributed to a broad market downturn, with safe-haven assets like the dollar holding close to recent highs.

GDP data for Germany, detailed (GMT) YY SA Q1 0645 QQ/YY May 12:30 Second Estimate of US GDP for France US Initial Jobless Claims Weekly, Q1 1230 (Naveen Thukral, reporter; Sherry Jacob-Phillips, editor)