Slowing exports lower wheat and corn prices, while South American weather supports soybean prices

On the first trading day of 2022, quotes on the US stock exchanges moved in a versatile way. Wheat and corn prices fell on the back of slow exports, while soybeans rose due to a drought in southern Brazil.

Precipitation in winter wheat growing regions in the United States also increased pressure on quotes. In the center and south of the Plains over the weekend there were heavy rains, in the east of Oklahoma there were heavy rains, but in the West there was little precipitation, and arid phenomena persist. This week, the Arctic air will bring frosts of -15...-17 ^OhC, which can damage weak winter wheat crops that are still almost not covered with snow.

Wheat exports from the United States for the week fell by half to 141.8 thousand tons, which is 70% lower than last year's figure. Total exports in the season reached 12.087 million tons, which is 25% lower than last year's pace.

March US futures fell yesterday:

• by 1.7% or 4 4.68 / ton to Чикаго 278.5/ton for soft winter SRW wheat in Chicago (-6% for the week),
• by 1.2% or 3 3.67 / ton to H 290.8/ton for hard winter HRW wheat in Kansas City (-6%),
• by 1.5% or 5 5.24/ton to 3 355.6/ton for durum spring hrs wheat in Minneapolis (-6%).

Corn exports from the United States for the week of December 24-30 decreased by 6% to 596 thousand tons, and in general in the season reached 12.898 million tons, which is 15% lower than last year's pace.

However, prices were somewhat supported by data on ethanol production, for which 11.9 million tons of corn were used in November, compared with 11.88 million tons in October.

March corn futures fell 0 0.04/ton to.5.89 / Bush.

A drought in the Brazilian state of Paraná reduces the potential of soybean and corn crops. StoneX lowered its forecast for corn production in the country by 2.5 million tons to 117.5 million tons, and soybeans – immediately by 11 million tons to 134 million tons, in particular in the state of Parana – by 38% or 7-8 million tons.

Soybean exports from the United States in the last week of December decreased by 45% to 1,192 million tons, and in general in the season reached 30.3 million tons, which is 23% lower than last year's pace. The volume of soybean processing in the United States in November decreased by 3.3% compared to October to 5.184 million tons, which is lower than traders ' expectations.

March soybean futures rose 1.2% to 4 497.5/ton, receiving speculative support from the drought in Paraná.