Grains and oilseeds climb on delayed planting and export trends
Grains and oilseeds markets saw gains this week, driven by delayed fieldwork and favorable weather conditions. Soybeans rose on fund and technical buying, with harvest progress lagging behind average. While the forecast looks dry for now, more rain is expected next week. U.S. exports could benefit from Brazil’s currency strengthening against the dollar, but China’s tariffs on U.S. soybeans may limit demand shifts. State-run Chinese companies are expected to maintain solid purchases to meet government targets. The market is also monitoring planting progress in South America, with key reports from the USDA and CONAB upcoming.
Corn prices climbed higher due to fund and technical buying, with traders closely watching U.S. harvest activity. Recent wet weather in key growing areas has raised concerns about disease, which could prompt the USDA to lower its yield outlook in Friday’s report. Ethanol exports in August reached 211.8 million gallons, a five-month high, while DDGS exports hit their largest monthly total since August 2015. Traders are also keeping an eye on planting in South America and export prices in Argentina, Brazil, and China relative to the U.S.
The wheat complex also saw gains on fund and technical buying. U.S. winter wheat planting and emergence are behind average due to rain in the Plains, though long-term soil moisture recharge will benefit early development. Slow export movement out of the Black Sea could eventually favor U.S. wheat, but this impact has not yet materialized. Traders are monitoring planting in Russia and Ukraine, as well as late development weather in Argentina and Australia ahead of widespread harvest activity.