Agriculture News
Disconnect between prices and production threatens to create a “volatility trap” in commodities and discourage investment in the sector, something that could threaten the supercycle.
Both the HRW and SRW crops showed mild improvement over the past week.
Wheat and corn futures are being supported by supply concerns amid the ongoing war between Russia and Ukraine. Soybeans are under pressure to open the week amid pressure from weakening crude oil prices.
Short-term trend turns up for corn, down for crude oil.
Wheat and corn futures were supported by solid followthrough buying from last week’s gains in overnight trade, while soybeans weakened.
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USDA left U.S. old-crop corn ending stocks unchanged, whereas traders expected a cut. Global corn ending stocks also unexpectedly increased.
Grain and soy complex futures held in narrow ranges in light trade overnight as traders await USDA’s April Supply & Demand Report later this morning.