The price of soybeans and corn rose on Monday as concerns over Brazilian weather and a weaker dollar impacted trading. Chicago soybean and corn prices saw an increase as rain forecasts for Brazil’s drought-ridden crops were assessed, while a weaker dollar made U.S. supplies more affordable on the international market.
As of 21:46 Beijing time, the main soybean contract on the Chicago Board of Trade rose 0.3% to $13.4475 per bushel, bouncing back from its lowest level since November 3 earlier in the day. Corn also experienced a 0.1% increase to $4.6775 per bushel, while wheat fell 0.2% to $5.74 per bushel.
The precipitation expected this week in Brazil’s northern soybean-producing region is set to offer some temporary relief from the hot and dry conditions, according to Commodities Weather Group. However, drought is anticipated to return to northern Brazil, leading some farmers to switch from soybeans to other crops like cotton.
Matt Ammermann, commodity risk manager at StoneX, stated, “A weaker dollar is supportive of U.S. export prospects, along with concerns about Brazilian weather supporting grains and soybeans today.” He added, “Brazilian soybeans need more rain and more rain is expected this week, but the weather will become hot and dry again in the coming weeks. This is also a factor supporting corn.”
Additionally, China’s recent increase in purchases of U.S. soybeans has impacted the market, raising the possibility that China will resume buying U.S. soybeans going forward.
On the other hand, wheat prices weakened due to a lack of demand and strong competition in export markets for U.S. supplies, particularly Russian supplies. The market also showed a lack of concern over the latest reports of ship incidents in Ukrainian shipping lanes, which continue to handle a growing volume of cargo reaching world markets.
Ammermann noted, “What was seen as a huge risk a few months ago now appears to be seen as a normal course of business in the Black Sea.”