Market News

Soybeans, grains strengthened again by South American weather

Soybeans closed higher, supported by weather concerns – hot and dry conditions – in southern Brazil. The market also found strength from ongoing speculation that China will buy U.S. soybeans. Forecasts have mostly dry weather in Brazil, but the opposite is true in northern Argentina. DTN says they’re getting heavy rain that will likely result in flooding. There’s a chance the Brazil and Argentina crop estimates in USDA’s January 11 WASDE report will be postponed if there’s no resolution to the government shutdown soon.

Corn was higher Thursday on the possibility of Chinese purchases of U.S. corn and weather concerns in Brazil and Argentina. Corn could be damaged by drought in Brazil and by flooding in Argentina. Export demand for corn is good, but domestic demand has had its challenges.

Wheat closed higher, still priced to be good buy on the international export market. Wheat is near its lowest price in months. Combined with the lower dollar, U.S. wheat should be looking more attractive to foreign buyers. Heavy rain in Argentina is lowering that country’s wheat crop production estimate.