Wall Street's major stock indexes all fell more than 1% while the dollar hit a six-week peak on worries that the Federal Reserve would need to keep aggressively tightening policy to fight inflation. CBOT March soybeans settled up 3/4 cent at $15.26-1/2 per bushel while the November contract, representing U.S. soybeans that will be planted this spring, finished up 8-3/4 cents at $13.83-3/4.
With the U.S. planting season approaching, current prices for new-crop December corn and November soybean futures favor corn versus soybeans, Reilly said. "Beans are trying to buy back acres," he said of the strength in November futures. The U.S. Department of Agriculture is expected to release unofficial forecasts for 2023 plantings and production of major U.S. crops at its annual two-day Outlook Forum next week.
Meanwhile, the soybean harvest is under way in Brazil. Consultancy AgRural lowered its forecast of Brazil's soybean crop to 150.9 million tonnes, down from 152.9 million previously, but still the largest on record, if realized. In Argentina, early frosts in the coming days could hurt the country's drought-hit soy and corn crops, the Buenos Aires grains exchange said. CBOT March corn settled down 1/4 cent at $6.76 per bushel. CBOT March wheat ended down 4-1/4 cents at $7.65 a bushel, while K.C. March hard red winter wheat closed up 4 cents at $8.98-1/2.
Corn and wheat markets had underlying support from questions about whether a safe shipping agreement for Ukraine's grain exports will be extended with the first anniversary of Russia's invasion of Ukraine approaching next week. (Reporting by Julie Ingwersen in Chicago; Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; editing by Kirsten Donovan and Diane Craft)
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