By Steve Freed | ADM Investor Services, Inc.

SOYBEANS

The soy complex felt pressure from the “risk off” mood in global markets, but ended up with mixed result for Thursday’s trading session. The combination of a strong Dollar rally and a new record low in the Brazilian currency provided an advantage to Brazilian soybeans over US soybeans on the global export market, and that helped to send soybean prices down to a new contract low. The heaviest losses were posted by bean oil, however, as a 5-month low in Malaysian palm oil prices helped to send bean oil prices down to new contract lows as well. In contrast, meal prices were able to shake off early pressure and finish the day in positive territory. The Export Sales Report showed that for the week ending March 5, net soybean sales came in at 302,800 tonnes for the current marketing year and 1,400 for the next marketing year for a total of 304,200.Cumulative soybean sales have reached 69.2% of the USDA forecast for the 2019/2020 (current) marketing year versus a 5 year average of 88.0%. Sales need to average 595,000 tonnes per week to reach the USDA forecast.Net meal sales came in at 171,800 tonnes for the current marketing year and 100 for the next marketing year for a total of 171,900. Cumulative meal sales have reached 69.5% of the USDA forecast for the 2019/2020 (current) marketing year versus a 5 year average of 72.3%. Sales need to average 122,000 tonnes per week to reach the USDA forecast. Net oil sales came in at 24,700 tonnes for the current marketing year and none for the next marketing year. Cumulative oil sales have reached 79.7% of the USDA forecast for the 2019/2020 (current) marketing year versus a 5 year average of 61.3%. Sales need to average 6,400 tonnes per week to reach the USDA forecast.

CORN

Corn prices were pressured by several different factors as they reached a new contract low before closing Thursday’s trading session with a sizable loss. A sharp selloff in energy markets is likely to diminish ethanol demand which weighed on corn prices this morning. In addition, a general “risk off” mood in global markets fueled long liquidation in the corn market. A strong rally in the Dollar will be a headwind for US corn export prospects. The Export Sales Report showed that for the week ending March 5, net corn sales came in at 1,471,200 tonnes for the current marketing year and 128,100 for the next marketing year for a total of 1,599,300. Cumulative sales have reached 64.2% of the USDA forecast for the 2019/2020 (current) marketing year versus a 5 year average of 73.1%. Sales need to average 611,000 tonnes per week to reach the USDA forecast. Recent rainfall will delay the plantings for Brazil’s Safrinha crop which provided some measure of support to the market.

WHEAT

Wheat prices were able to make a sizable rebound from early 5-month low, but they still finished Thursday’s trading session with a moderate loss. KC wheat and Minneapolis wheat also closed with mild losses. A massive rally in the Dollar was a major source of pressure on the wheat market as it will make US wheat less competitive on the global export market. Excessive rainfall over German and French growing areas over the past month could lead to a decline in 2020/21 EU soft wheat production from last season. However, better precipitations should result in larger Australian wheat output during the 2020/21 season. The Export Sales Report showed that for the week ending March 5, net wheat sales came in at 452,300 tonnes for the current marketing year and 28,500 for the next marketing year for a total of 480,800. Cumulative sales have reached 86.8% of the USDA forecast for the 2019/2020 (current) marketing year versus a 5 year average of 90.5%. Sales need to average 285,000 tonnes per week to reach the USDA forecast.

The information conveyed by ADMIS or its affiliates to the audience is intended to be instructional and is not intended to direct marketing, hedging or pricing strategy or to guaranty or predict future events, including the pricing and pricing movements of commodities and commodity futures contracts.