Crop markets found a boost toward the end of the week ending on March 24.
Export sales hit a marketing year high last week of 122 million bushels, with China accounting for 73% of that total. That brings corn to 74% of the USDA’s forecast for the year, but that is behind the average annual pace. However, the estimates show that the U.S. will not be the major exporter of corn moving forward.
“According to the USDA, Brazil will export more corn than the U.S. this year for the first time in a decade,” Dustin Jonasson of Total Farm Marketing said. “The Chinese purchases are still well behind the past couple years, but very welcome to the market that was concerned about export demand.”
Meanwhile, the soybean market is “technically oversold,” Jonasson said, helping the market join the jump at the end of the week. While corn demand has seen a recent boost, there is some worry about soybean demand as prices hit a one-year low in China and African swine fever continues to affect the country.
Soybean markets are being supported by higher soy meal and soy oil prices recently, which comes from higher corn and wheat markets.
“The rally seemed to be tied to rumors that Russia would suspend their exports of wheat and sunflower products,” Jonasson said.
Possible lower Russian exports sparked soybeans as Argentina is dealing with a significantly lower crop and is expected to import up to 39% more beans than in previous years.
Wheat markets are swaying on global news as Russian exports continue to be monitored, Jonasson said. The rumor of suspended exports have been reported as false, but that doesn’t mean reductions aren’t in order.
“The consensus seems to be that exporters are being encouraged to set a minimum threshold to make sure farmers are paid enough,” Jonasson said.
