Grain markets move higher on Tuesday

Market News

Grain markets move higher on Tuesday

Soybeans ended the day higher, with May contracts up 19 and ½ cents at $10.34 and 1/4. Markets also found support from sharply higher bean oil.  The USDA’s announcement of funding for the administration’s biofuel blending infrastructure was supportive.  There was some focus from traders on the decline in expected soybean acres on Tuesday.  This week’s Prospective Plantings report from the USDA had soybeans down 4 percent from year-ago levels at 83.5 million acres.   The threat of tariffs isn’t lost on the market, and traders are waiting to see what unfolds this week.    

Corn finished the day higher, with May corn up 4 and 1/2 cents at $4.61 and 3/4.  The trade largely shrugged off the USDA’s expectation of the most corn acreage in more than a decade.  Export pace is running more than 30 percent higher than year-ago levels.  The market continues to monitor the weather ahead of planting.  The forecast has heavy rains moving through parts of the country, while others face a mix of rain, snow, and ice.  The market is also looking at weather conditions in South America, as the long-term forecast doesn’t look favorable for Brazil through the second half of the month.  That could be concerning for the safrinha crop.

The wheat complex closed higher. The USDA has a projected planted area for wheat that is much lower than the trade expected.  All wheat acres were at 46.4 million.  If realized that would be the second lowest since reporting began in 1919.  Crop ratings slid in several states across the Plains region, which provided some price-positive news for the market. The market is also monitoring weather conditions in Russia.