CORN
In the first session of the week on September 1, the price of CBOT corn fell back to $0.6/ton. The USDA’s weekly update on September 1 shows that the actual US corn exports in recent weeks were as low as market expectations. In addition, the weakening of the Brazilian real against the US dollar makes Brazilian agricultural exports more competitive in the international market. Brazil is the second largest exporter in the world.
Corn price CBOT closed the session on January 10, increasing slightly back to 0.9 USD/ton. Prolonged dry weather in Argentina poses many risks to the crop. Thereby, making corn planting progress in the crop year 2022/23
Closing the session on January 11, the CBOT corn price increased slightly by 0.4 USD/ton ahead of important USDA’s upcoming reports. The market is concerned about the prospect of corn harvest in the 2022/23 crop year in Argentina due to prolonged drought that adversely affects crops.
After the USDA report cutting the estimated output of the US crop year 2022/23 in the newly released Supply-Demand report, the price of CBOT corn increased sharply for 2 consecutive sessions. Specifically, USDA has estimated corn production to 348.8 million tons, 5 million tons lower than last month’s report also smaller than traders’ expectations.
WHEAT
CBOT wheat price decreased by 0.7 USD/ton at the end of the first session of the week on January 9 and this is the second consecutive decrease. In general, world wheat prices have tended to go down quite strongly since the end of 2022 due to abundant supply pressure from the Black Sea. Russia has had a bountiful harvest in 2022 and is currently promoting wheat exports to other countries, in addition to the positive news that the wheat harvest in Australia is better than initially expected, adding pressure. decrease in CBOT price.
Closing the last session on January 10, wheat prices fell by $3.8 per ton, marking the third consecutive decline. According to traders, the lowest asking price was offered at an auction to buy 60,000 tons of wheat from the Egyptian state.
After 3 consecutive sessions of decline, CBOT wheat prices closed on January 11 and turned to increase by 3.3 USD/ton.
Following the market’s upward momentum, at the end of the last two sessions of the week, the price of CBOT wheat increased slightly after the USDA report, specifically, the winter wheat planting area in 2023 was estimated at 15 million hectares, up 10.1%. compared to 2022 and higher than traders’ expectations.
SOYBEAN AND SOYBEAN MEAL
For soybeans and soybean meal, CBOT price on January 9 session fell by 1.5 and 8 USD/ton, respectively due to selling pressure to take profit on the trading floor after the strong increase session at the end of last week. FAS increased its estimate of Brazil’s 2022/23 soybean acreage to 43.3 million hectares and forecast production to 153 million tons.
Pea and soybean meal prices closed session 10/1, down 1.2 and 1.5 USD/ton, respectively. AgRual now puts Brazil’s soybean production estimate for 2022/23 at a record high of 153.6 million tons.
Soybean and CBOT soybean meal prices recovered after previous consecutive declines. Currently, Brazilian farmers have begun to harvest soybeans in the new season with very high yield prospects. Demand for US soybeans is also dwindling, experts say, as supplies from Brazil’s bumper crop will flood the market in the coming weeks.
USDA’s supply and demand report cut soybean output to 116.4 million tons, down 1.9 million tons compared to December, causing CBOT prices in the last 2 sessions of the week to increase sharply.
