CHICAGO:Despite strong Chinese demand providing some support to the market, CBOT corn futures ticked down on Monday, retreating from a more than three-week high reached in the previous session.
Under pressure from weaker crude and vegetable oils, soybean and wheat futures also gave up gains from the previous session. A dealer with a global trade house based in Mumbai stated, “The market has now been discounting the poor Argentine soy crop and focusing on Brazil’s record harvest.”
The most active soybean contract CBOT was down 0.18 percent, trading at $14.25-3/4 a bushel. Wheat fell 0.58 percent to $6.84-1/2 a bushel, while corn fell 0.7 percent to $6.38-1/2 a bushel.
“There is little room for further grain downside now that the correction of the previous two weeks has passed.
Mostly traders said, “Funds have started adding new long positions, so the market will stabilize around the current levels.”
Farm Futures Magazine conducted a survey of planting intentions in the United States and found that growers anticipate planting 87.677 million acres of corn in 2023, down 1 percent from the 88.579 million acres planted a year earlier.
According to the survey, soybean plantings in 2023 are anticipate at 89.620 million acres, an increase of 2.5 percent from the USDA’s 2022 estimate of 87.450 million acres.
After the disruptions caused by the war have subsided, Morocco has emerged as the primary destination for wheat exports from the European Union in 2022 and 2023. This is because sales to other locations have been limited as a result of revived Black Sea competition.
While Moscow may recommend a temporary halt to the export of wheat and sunflowers, traders are also evaluating the uncertainties surrounding the Black Sea grains deal.
Later, sources told that Russia had no plans to stop exporting wheat, but that exporters wanted to make sure farmers were paid enough to cover average production costs.
According to traders and analysts, falling prices have sparked a flurry of Chinese purchases of US corn as the world’s largest buyer of the grain tries to make up for a slow start to its import program.