CORN
The market was on holiday on Monday, opening the first session of the year, the price of CBOT corn fell by 3.1 USD/ton due to selling pressure to take profit after a strong increase at the end of 2022. One of the reasons for the price drop may be. Not to mention is the disappointing news on US agricultural exports for the week ending December 29, 2022. Specifically, according to USDA, the amount of corn exported was only 667 thousand tons. Besides, the appreciation of the dollar and the fall of crude oil prices are also the causes of price decline.
Corn prices continued to decline in session 4/1 following the general decline of the market due to selling pressure to take profit after the increase in late 2022, in addition, the sharp decline in crude oil prices from the beginning of the week to now is also a factor affecting the price of corn. As a result of falling prices, corn is an input in the production of biofuels. Fluctuations in oil prices affect the price of corn in the same direction.
Closing the session on January 5, CBOT corn price continued to decrease by 0.4 USD/ton. This is the 5th consecutive session that corn prices have decreased, totaling 11.8 USD/ton lower than the session on December 28, 2022. The market has concerns about the unfavorable global economic situation, which may negatively affect the demand for goods, including the impact of information about the increase in the number of Covid-19 infections. in China.
Closing the last session of the week on January 6, CBOT corn price adjusted slightly by 0.6 USD/ton after falling for 5 consecutive sessions. The market has many concerns about the prospects of Argentina’s corn crop in 2022/23 due to the impact of prolonged dry weather.
WHEAT
Closing the first session of 2023, wheat prices fell by 6.1 USD/ton. The reasons for the price drop were lazy selling pressure, dollar appreciation, falling crude oil prices along with disappointing wheat exports in the US when last week, the US only exported 86,000 tons of paddy rice. noodles.
At the close of the session 4/1, wheat was the commodity with the CBOT price dropping the most with 11 USD/ton compared to the previous day due to the pressure of abundant cheap supply from the Black Sea area. Russia, the world’s largest wheat exporter, harvested a record-breaking grain crop of 151 million tons in 2022, including 102.7 million tons of wheat.
Wheat on January 5 was revised up slightly back to $0.4/ton after being strongly affected in the previous two versions. In general, the market is still under pressure due to the abundant supply of wheat at competitive prices from the Black Sea region.
Closing the session on January 6, the price of CBOT corn decreased by 1.2 USD/ton due to abundant supply pressure from the Black Sea. Analysts say wheat exports in Russia remain high, possibly reaching 3.6 to 4 million tons. In addition, according to the latest report on January 6 on a bountiful wheat crop in Australia, a major wheat exporter in the world, that is also a factor putting pressure on CBOT prices.
SOYBEAN AND SOYBEAN MEAL
Soybean and soybean meal are not out of the downtrend, apart from the common reasons that caused the commodity market to drop at the beginning of the year, in Argentina, the rains occurred in the agricultural areas of this country last weekend. Some of the relief from the drought is also one of the reasons for the decline in prices as Argentina is one of the world’s largest soybean meal exporters.
Not out of the market’s downtrend, closing session 4/1, soybean and soybean meal prices decreased by 3.2 USD/ton and 2.6 USD/ton, respectively. Being in the input material of natural fuel, when the price of crude oil falls, the price of soybean also decreases. In addition, the selling pressure to make a profit and the improved drought in Argentina partly caused the price of soybeans and soybean meal to decrease.
Closing the session on January 5, soybean prices fell by $4.7/ton, while soybean meal prices increased by $2.40/ton. Unfavorable macro factors, bringing high risk aversion to investors, put agricultural prices on CBOT under downward pressure recently.
At the end of the last trading session of the week on January 6, the price of soybeans and soybean meal CBOT increased strongly by 8 and 14 USD/ton, respectively. Traders expect China’s import demand for soybeans to increase in 2023, which will help support world prices. Experts estimate that China’s soybean meal inventories have reached a record low by the end of 2022.
