Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Nearby soybean futures rose to a nine-month high as escalating Russia/Ukraine concerns fueled broad strength across commodity markets.
Pork stocks build less than normal, beef inventories rise contra-seasonally
Corn futures ended the week near seven-month highs behind spillover support from gains in soybeans and ongoing concerns that a potential Russian invasion of Ukraine my disrupt global grain trade.
Due to negative crush margins, some soybean crushing plants in China are suspending operations, according to industry sources.
DEVELOPING: There’s a new issue getting inputs after the only potash mine in Belarus declared a force majeure.
Some Chinese soybean crushing plants suspending operations
The International Grains Council (IGC) slashed its 2021-22 world soybean production estimate to 353 million metric tons (MMT). . .
Chinese soybean processors have canceled 10 Brazilian soybean cargoes since last week, according to sources cited by Bloomberg.
March SRW wheat rose 17 1/2 cents to $7.98. March HRW wheat rose 15 cents to $8.23. March spring wheat gained 5 1/4 cents to $9.57 1/4.
China cancels 10 Brazil soybean cargoes
Hopes for docile agriculture markets in 2022 have already been blown out of the water. Instead, we could be headed for a volatile year – or more.
USDA Secretary Tom Vilsack wants the Department of Justice (DOJ) to ensure seed companies and other input suppliers are not using their market power and current conditions to raise prices unfairly.
With a forecast for one more week of hot and dry weather conditions and then a shift to more rain, Argentina’s crop stress might be near the peak, according to World Weather Inc.
In front of the Senate Committee on the Environment and Public Works, the biofuels industry stressed the importance of the Renewable Fuel Standard (RFS) to a clean energy policy.
April lean hog futures rose $1.25 to $105.40, the highest settlement for a nearby contract since prices topped $110.00 in August.
China can reduce its soybean demand by 30 MMT by continuing to promote lower soymeal rations in feed and using alternative proteins, the official Xinhua news agency reported, citing unnamed agriculture officials.
Members of the National Oilseed Processor Association (NOPA) crushed 182.2 million bu. of soybeans in January, down 4.2 million bu. from the December record . . .
Crop insurance price guarantees might be higher than last year for corn and soybeans, according to USDA Chief Economist Seth Meyer at the Crop Insurance Convention.
Anticipation of continued cash market strength boosted live cattle futures, as illustrated by the February contract’s $2.50 premium to last week’s live steer average of $140.48.
Crop Consultant Dr. Michael Cordonnier says he was holding out hope that production losses due to drought in southern Brazil would be partially offset by stronger yields in central and northern areas.
March corn futures rose 4 3/4 cents to $6.55 3/4, the highest close for a nearby contract since $6.83 on July 14. December corn rose 3 1/2 cents to $5.98 1/4 after posting a contract high.
The University of Michigan’s Consumer Sentiment Index dropped to 61.7, from 67.2 in January and down from a 76.8 reading in February 2021.
Soybean prices have a chance of hitting the all-time high of $17.94 3/4 a bushel set in 2012 said Alex Sanfeliu, head of Cargill’s World Trading Group. . .
Due to drought in the country, Paraguay’s soybean production could drop to 5 MMT this year . . .
U.S. farm groups representing thousands of farmers and farmer-owned cooperatives that will be harmed by EPA’s decision to revoke all tolerances of chlorpyrifos are taking legal action against the agency.
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