Soybeans found strength overnight as flooding concerns mount in Argentina. Corn and wheat were along for the ride but gains were more tempered in outside markets, crude oil had strong gains, as it tries to get back to the $52 mark for the first time in nearly a month.
Rains over the last week have raised concerns about the Argentine soybean crop as harvest gets underway. Last week, rain totals reached as much as 6 inches in some areas with a bit more hitting over the weekend. Moderate to heavy rain is expected for a majority of Argentina’s production region Friday into Sunday, with some flooding possible. However, Apr 11 is expected to bring a dry down period allowing time for harvest and flood waters to recede.
Ukraine is expected to harvest 24.2 MMT of wheat in 2017, analyst UkrAgroConsult said on Wednesday, raising its forecast from 23.5 MMT. The wheat crop could reach 25-26 million tonnes if there are favourable weather conditions. However, that would still be below last year’s output of 26.8.
In corn, the trade moved lower yesterday with heavy farmer sales and a drop in export values. The first line of resistance on front-month May should be 371 ¾, the high from Monday’s trade; down support is from last week’s crop report in the 358-360 area.
In oil, API stocks data yesterday showed a drawdown of 1.83 million barrels on the week, versus a trade estimate of only a 0.3 million barrel drop (expected). Official government EIA data today with a modest 0.2 million barrel drop expected by the trade.
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