The Chicago Board of Trade (CBOT) March corn CH24 was up 6-1/4 cents at $4.46-1/2 a bushel as of 12:23 p.m. CST (1823 GMT). This was a recovery from a decline to $4.36-1/2, which was the lowest on a continuous chart of the most active contract Cv1 since December 2020.
CBOT March soybeans SH24 rebounded from a low of $11.87-3/4, the lowest on a continuous chart Sv1, since November 2021, and were up 17-1/4 cents at $12.11-1/2 a bushel. At $6.04 a bushel, CBOT March wheat WH24 saw a 10-1/2 cent increase.
Benchmark soybean futures Sv1 are down over 7% and corn futures Cv1 are down 5% for the month, respectively. This decline is due to growing investor confidence in emerging crops in Brazil and Argentina as well as sufficient supply in the United States following record-breaking 2023 harvests.
Commodity funds currently possess substantial
dealers seemed to be considering if prices would drop much more or if the existing fundamentals had been taken into account in all three grain markets.
“Many of us are still attempting to interpret crop sizes from South America,” stated Dan Basse, president of AgResource Company located in Chicago. “Bear markets will end when we’ve digested all the news, and it’s always a question if we have done that,” Basse said.
Others anticipated that the weak demand, coupled with an excess of maize in the United States and China’s disinterest in American soybeans, would continue to plague the grain markets.
“A lot of folks will be happy about the lows being in today. However, there is more than 2 billion bushels of maize left over. It’s a long way to a tight balance sheet without big, gigantic sales, according to Ted Seifried, chief market strategist at the Zaner Group.
The U.S. Department of Agriculture (USDA) stated on Monday that condition ratings for winter wheat improved in Kansas, the country’s largest producer, during January as the drought subsided over most of the Plains, but ratings decreased in other states, including Texas.
(Additional reporting by Peter Hobson in Canberra and Gus Trompiz in Paris to Julie Ingwersen’s reporting) Marguerita Choy handled the editing.
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