CBOT weekly outlook: Corn, wheat undergo major corrections

Reading Time: < 1 minute

Published: March 16, 2022

,

CBOT July 2022 wheat (candlesticks) with Bollinger bands (20,2). (Barchart)

MarketsFarm — Russia’s invasion of Ukraine has done little to stabilize corn and wheat markets on the Chicago Board of Trade (CBOT) for the week ended Wednesday.

After high price spikes during the previous week, peace talks between the two nations and very few signs pointing toward escalation or resolution have brought on a recent downturn, among other factors such as funds moving toward equities.

“Wheat was pretty much overbought to begin with, but there’s still a lot of uncertainty in the grain markets, corn and wheat,” said Terry Reilly, senior agriculture futures analyst for Futures International in Chicago. Both Russia and Ukraine are among the world’s four largest wheat exporters.

Read Also

Detail from the front of the CBOT building in Chicago. (Vito Palmisano/iStock/Getty Images)

U.S. grains: Wheat futures rise on supply snags in top-exporter Russia

U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.

“We think a lot of business will shift to the (United States). The thing is we haven’t seen it, so that’s put pressure on prices,” he added.

Meanwhile, Argentina’s suspension of export registrations for soy meal and soyoil has been a major factor for soybeans, but weather is providing a bearish effect.

“We’re keeping an eye on major importers possibly stepping in and buying meal from the U.S. and also vegetable oils because the Black Sea (is having) problems getting sunflower oil out of that region,” Reilly said.

“But the weather did improve in South America, stabilizing the bean crop in Brazil and Argentina. Argentina’s harvest is just kicking in.”

Nevertheless, which direction the markets go depends on the latest news from Ukraine.

“Basically, it’s been headline trading over the past 20 days and we’ll just have to monitor the situation, monitor export commitments out of the U.S. and actual shipments. Until that significantly picks up, I think we’ll see a little bit of weakness in the grain and oilseeds markets,” Reilly said.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.

About the author

Adam Peleshaty

Adam Peleshaty

Reporter

Adam Peleshaty is a longtime resident of Stonewall, Man., living next door to his grandparents’ farm. He has a Bachelor of Science degree in statistics from the University of Winnipeg. Before joining Glacier FarmMedia, Adam was an award-winning community newspaper reporter in Manitoba's Interlake. He is a Winnipeg Blue Bombers season ticket holder and worked as a timekeeper in hockey, curling, basketball and football.

explore

Stories from our other publications