The grains market experienced a significant selloff attributed to positioning ahead of the USDA’s Agricultural Outlook Forum slated to commence on Thursday. Analysts predict the agency will report higher ending stocks for corn, soybeans, and wheat, prompting funds to accelerate their activities, driving corn to new contract lows.
Corn Market Dynamics
Corn futures plunged to new lows amidst fund selloff, with the next significant chart support level for March futures seen at a long-term low around $4.20, or €3,91 according to analysts.
Soybean Market Trends
Soybeans also witnessed new lows amid the selloff, breaching a major chart support area around the $11.79 or €10,99mark. Analysts note the absence of threatening weather in South America as another contributing factor to the market’s weakness.
Wheat Market Developments
Speculative selling pushed wheat futures to new contract lows, particularly in Kansas City and Minneapolis. Additionally, news regarding Black Sea exports impacted market sentiment, with reports suggesting Ukraine’s intention to export approximately 50 million metric tons of corn, wheat, and oilseeds, potentially competing with US exports.
As the grain market braces for the USDA’s Ag Outlook Forum, investors closely monitor developments and anticipate the agency’s assessment of ending stocks. Market dynamics continue to be influenced by speculative activities, geopolitical factors, and global supply and demand trends, shaping the trajectory of grain prices in the coming days.
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