Following the same trend as yesterday, corn and wheat edged up Tuesday and soybeans slid for the second day in a row.
December corn rose 1 3/4 cents, closing at $3.56 1/4, while Chicago December wheat edged up 1/4 cent to $4.02 1/5. January soybeans went down 3 cents, but stayed in an upper range of $10.28.
“You can see a holiday environment setting in,” notes Don Roose, president of U.S. Commodities in West Des Moines, Iowa. “Funds remain short corn, and right now, we’re the cheapest corn in the world. Soybeans are still at lofty levels, at the upper end of the range.”
Demand remains strong, with U.S. ag export sales up 74% over a year ago, according to Roose: “It has been the story … huge supplies vs. huge demand."
USDA estimates U.S. soybean exports will rise 114 million bushels to 2.05 billion bushels in 2016-17. Estimates for corn exports increased 327 million bushels to 2.2 billion bushels. Wheat export estimates also went up, rising 200 million bushels to 975 million bushels.
Analysts continue to monitor Argentina’s weather, which is turning more favorable with temperatures cooling and rain in the forecast for next week. Both Argentina and Brazil are expected to have good harvests barring any unforeseen weather events moving forward.
“Soybeans continue to hover. Traders are waiting on fresh news regarding weather in Argentina,” says Joe Vaclavik, president and founder of Standard Grain in Chicago.