Market Overview and Key Drivers
On Friday, corn and soybean futures in Chicago rose from multi-month lows, supported by short covering and a weakening US dollar, according to analysts.
Brokers in the grain market were adjusting positions while focusing on upcoming reports from the US Department of Agriculture (USDA) on crop acreage, stocks, and harvest progress. These reports are scheduled for release on Monday.
Favorable supply outlooks in the US and globally have continued to cap prices. The most active soybean contract increased by 9.75 cents, reaching $10.2625 per bushel. However, the contract fell by 3.77% during the week.
Wheat advanced 4.5 cents to $5.4125 per bushel, rising by 0.72% on Friday but experiencing a significant weekly decline of 7.57%. Corn futures on the Chicago Board of Trade (CBOT) gained 1.95% on Friday, but lost 2.62% during the week.
Expert Insights and Market Dynamics
Randy Place, an analyst at Hightower Report, stated, “There is some short covering following the massive wave of selling. We’ve already priced in a significant portion of bears this week.”
The US dollar’s greater weakness, driven by expectations of additional interest rate cuts in the US this year, also bolstered commodity markets.
Despite Friday’s rebound, global supply projections continue to weigh on grain markets.
Global Supply Outlook and Adjustments
The International Grains Council raised its projection for the world wheat crop in 2025-26 by 2 million tonnes to 808 million, while the European Commission increased its forecast for soft wheat production in the EU by 1.6 million tonnes to 128.2 million.
Key Questions and Answers
- What caused the recent rise in corn and soybean futures? The increase was due to short covering and a weakening US dollar, supported by analysts.
- How have brokers in the grain market been positioning themselves? Brokers are adjusting positions and focusing on upcoming USDA reports on crop acreage, stocks, and harvest progress.
- What factors have capped prices in the grain market? Favorable supply outlooks in the US and globally have limited price increases.
- What is the current status of wheat and corn prices? Wheat advanced 4.5 cents to $5.4125 per bushel, rising by 0.72% on Friday but falling 7.57% during the week. Corn futures on the CBOT gained 1.95% on Friday, but lost 2.62% during the week.
- How have global supply projections influenced grain markets? Despite Friday’s rebound, global supply projections continue to weigh on grain markets. The International Grains Council and the European Commission have both increased their wheat crop projections for 2025-26 and the EU, respectively.
