The weakness in soyoil pressured soybeans and soymeal, which also were weighed by a sharp drop in crude oil prices and worries that COVID-19 lockdowns in China would hurt demand from the world’s top buyer, Reuters reports.
Soybeans (S_1:COM) for July delivery settled -0.8% to $16.75 1/4 per bushel, while July corn (C_1:COM) closed +1.1% to $7.98 per bushel – as traders believed weather over the weekend would keep corn planting limited – and July wheat (W_1:COM) for July delivery ended -0.3% to $10.72 1/2 a bushel.
Prices for corn could rally to as high as $10 per bushel, Daniel Flynn of Price Futures Group said, which would easily beat the all-time record of nearly $8.40 in September 2012.
“We have rainy and cooler-than-normal temps that will delay plantings again this week with no timetable when Mother Nature will spawn spring weather,” Flynn said.
After the market close, the U.S. Department of Agriculture said good-to-excellent ratings for the U.S. winter wheat crop fell to 27% and corn planting was 7% complete; both readings were below market expectations.
The USDA also raised its estimate for Y/Y food inflation to a range of 5%-6% from a previous outlook of 4.5%-5.5%, according to the April Food Price Outlook report.