U.S. agricultural futures close mixed

Chicago Board of Trade (CBOT) agricultural futures closed mixed on Tuesday, with movements in corn, wheat, and soybean contracts. The most active corn contract for May delivery saw a 0.8 percent increase, rising by 3.5 cents to settle at 4.395 U.S. dollars per bushel. Similarly, May wheat experienced a significant surge, climbing by 1.8 percent, or 9.75 cents, to settle at 5.525 dollars per bushel. In contrast, May soybean fell by 0.19 percent, dropping 2.25 cents to settle at 11.855 dollars per bushel.

The decline in soybean prices was attributed to the increase in Brazilian cash soybean sales, which was influenced by the weakening Brazilian real. On the other hand, the rise in corn and wheat futures was driven by short covering activities and a rally in Paris wheat futures. Furthermore, it is anticipated that Russian wheat exports will reach a record high of 3.1 to 3.2 million metric tons in March.

With the upcoming U.S. Department of Agriculture (USDA) March Stocks and Seeding report scheduled for release on March 28, there was a sense of caution among traders, leading to a relatively quiet trading session with limited fresh risk-taking. AgResource, a Chicago-based research company, suggested that the current CBOT market dynamics are characterized by short covering during downturns.

Recent weather patterns in Brazil and Argentina have also influenced market sentiment. Northern and Central Brazil experienced increased precipitation, with above-average rainfall expected in the northern regions. This wet weather is beneficial for soil moisture restoration, particularly as Brazil enters the crucial April pollination period. In contrast, forecasts for Argentina indicate drier conditions, with heavy rainfall shifting towards Uruguay. Extreme heat is expected to be less prevalent outside of specific areas in Paraguay and Southwest Brazil.