SOYBEAN futures at the Chicago Board of Trade managed to hold onto small gains on Wednesday, despite a selloff in crude oil and soyoil, as optimism over looming trade talks between the United States and China provided some support.
- The tentative ceasefire agreement between the U.S. and Iran weighed heavily on world energy markets, causing soyoil to fall off its contract highs.
- The U.S. Department of Agriculture will release its latest supply/demand estimates on Thursday.
- Ideas that rising fertilizer costs will encourage more soybean plantings in the United States this spring put some pressure on values.
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CORN futures were weaker Wednesday, pressured by the losses in crude oil.
- A lack of any major weather worries as spring seeding starts in the southern U.S. contributed to the softer tone.
- However, the need to keep some premiums in the market to encourage corn area given the high fertilizer costs was somewhat supportive.
WHEAT futures fell sharply lower, with favourable forecasts and spillover from the losses in crude oil weighing on prices.
- Much of the U.S. Plains is expected to receive beneficial rain over the next week, which should help condition ratings for winter wheat improve.
- Adjustments to U.S. and world wheat stocks in Thursday’s USDA data could provide some direction, although traders anticipate only minor shifts.
