New Trends in Soybean, Corn, and Wheat: Rising Volatility and Key Supply

Corn Market Analysis

This week, the corn market was initially boosted by the USDA's estimate that U.S. corn ending stocks for 2024/25 would fall to a two-year low, reaching a five-and-a-half-month high of 4.51 1/5 cents per bushel. However, prices eventually fell to 4.48 1/4 cents per bushel, down 0.75 cents per bushel, as farmers sold off their stocks at high prices, increasing supply and weakening the cash basis.

The USDA also raised its corn export forecast to 2.475 billion bushels, near record levels, and increased expectations for corn used in ethanol production. These figures suggest that corn demand is gradually improving. However, despite an increase in export expectations, actual export sales have not risen significantly, particularly with China's corn demand remaining sluggish. The pressure from farmer selling may curb further price increases in the short term. In the near term, the market's price trend will be more influenced by supply-demand dynamics, especially given the challenges posed by global economic recovery and energy price fluctuations.

Looking ahead, key drivers for the corn market will include global economic recovery, energy price fluctuations, and changes in export demand. Changes in demand from the Chinese market in the coming months will continue to influence global corn prices.

Soybean Market Analysis

Soybean futures were slightly boosted this week by the indirect support of rising prices in external markets such as metals and energy, with prices rising by 0.75 cents to close at 9.95 1/2 cents per bushel. The USDA's latest supply and demand report shows that U.S. soybean ending stocks for 2024/25 are expected to be 470 million bushels, in line with market expectations, indicating a stable U.S. soybean market.

Although China's soybean purchasing has slowed, overall demand continues to support the market. Recently, China's soybean purchasing pace has been somewhat slow, and there is cautiousness about future demand, but as the largest soybean importer globally, China's demand changes remain a crucial market factor. Additionally, the recovery of global agricultural demand will also support the soybean market.

In soybean meal, ample spot supply and increased crushing rates have put pressure on prices. However, strong global animal feed demand, particularly in China and other emerging markets, will support the long-term direction of the soybean meal market.

Wheat Market Analysis

The wheat market saw prices rise to a two-week high this week due to the USDA's downward adjustment of ending stock estimates. The USDA projects U.S. wheat ending stocks for 2024 to reach historic lows, tightening market supply and driving wheat prices up. Recently, market concerns about U.S. wheat supply have intensified, especially as drought conditions in the Midwest have affected production expectations.

At the same time, global competition in wheat export markets has grown more intense. Major exporters like Russia and Ukraine have increased their supplies, heightening competition for U.S. wheat on the market. In the coming months, weather changes, global demand, and the stability of supply chains will continue to significantly impact the wheat market.

Summary

Volatility in the corn, soybean, and wheat markets is intensifying, and investors need to pay attention to supply-demand data, export dynamics, and global market trends. In the short term, pressure from farmer selling may limit price increases, while global economic recovery and energy price fluctuations will be key factors for future markets. The price trends of major agricultural products will continue to be influenced by climate conditions, international demand, and national policies. Investors need to closely monitor these changes and prepare appropriate strategies.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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