Chicago Board of Trade (CBOT) agricultural futures experienced an overall increase on Monday, with corn leading the way. The most active corn contract for May delivery saw a rise of 5.25 cents, or 1.24 percent, settling at 4.3 U.S. dollars per bushel. Similarly, May wheat and soybean also saw gains, with wheat rising by 6.25 cents (1.12 percent) to settle at 5.64 dollars per bushel, and soybean climbing by 3.75 cents (0.33 percent) to settle at 11.55 dollars per bushel.
In more specific terms, May corn futures tested the 20-day moving average at 4.33 dollars, while U.S. wheat futures rebounded from their previous contract lows. The upcoming U.S. Department of Agriculture (USDA) March crop report, set to be released on Friday, and the Stocks and Seeding Report due on March 28 will likely have an impact on market dynamics, especially with the imminent start of the spring planting season in the U.S. Midwest.
AgResource, a Chicago-based research company, holds the belief that CBOT price risks are skewed towards the upside, advising against new sales in the current market environment. There are uncertainties surrounding Ukrainian wheat production, as reports indicate that the country may have sold its final cargo for the 2023-2024 crop year. Additionally, the Ukrainian military’s decision to begin conscripting individuals from farms could potentially affect grain production in the nation.
On a global scale, Brazilian soybean export premiums have risen by two to four cents per bushel, indicating a strong demand for the commodity. In India, rainfall over the past 30 days has exceeded normal levels, prompting caution from AgResource against making significant downward adjustments to Indian wheat production forecasts.
