Grains Rise on Fund Buying and Crude Oil Strength
The soybean market saw an increase in prices due to fund and technical buying, as well as the rise in crude oil. The USDA's upcoming WASDE report could lead to a decrease in yield and an increase in demand projections for soybeans. China has been purchasing large quantities of US soybeans, with 918,500 tons sold over two days, but it is unclear if Beijing will meet its pledged purchases. Brazilian exports are also expected to be high, with ANEC projecting 7.74 million tons of soybeans to be exported in September.
Corn prices also rose due to fund and technical buying, as well as the increase in crude oil. Analysts expect a decrease in yield and new crop ending stocks estimates for corn ahead of Friday's update. The trade is also watching early planting activity in South America, with CONAB's updated outlook for Brazil to be released on the 15th.
The wheat complex saw an increase in prices due to fund and technical buying. The USDA is expected to make minimal adjustments to domestic wheat numbers, but globally, export projections for Russia and Ukraine could be down due to the war impacting Black Sea exports. Argentina and Australia have picked up some of the business lost by Russia and Ukraine.