The most active corn contract for May delivery plunged 15 cents, or 2.22 percent, to settle at 6.5925 U.S. dollars per bushel. May wheat rose 0.5 cents, or 0.07 percent, to settle at 7.505 dollars per bushel. May soybean fell 7.5 cents, or 0.49 percent, to settle at 15.2725 dollars per bushel.
Soybean futures tried to rally on the new speculative buying in soyoil, but failed. U.S. soybean and soy product demand is lacking as Brazilian premiums keep edging lower.
CBOT seems to be shifting its focus from Argentine weather to the potential for improved Northern Hemisphere seeding and lower world wheat prices. Chicago-based research company AgResource stays bearish, suggesting selling rallies.
Brazil has now harvested nearly 45 million metric tons of soybeans which is refilling the world soybean pipeline.
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack said at the USDA 2023 Outlook Forum on Thursday that Mexico will produce challenges for U.S. corn exports and that there is little room for compromise. Mexico is trying to ban U.S. GM corn imports beyond 2024. The market will continue to closely follow U.S. and Mexico GM corn negotiations. Mexico will import more than 600 million bushels of U.S. corn in 2022-2023 or some 30 percent of total U.S. corn exports.
It will be wetter with better rain coverage for Argentine crop areas after March 2. Dry weather follows in the 10-15 day period with another rain needed in mid-March. The Brazilian harvest is ongoing with below normal rain totals this week for northern and central crop areas.
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