January’s Grain Prices Market Snapshot for the US

Grain prices in the United States might see an increase this January, while soybeans are struggling to hold steady. Olivier Bouillet from ASAP Agri highlighted some key factors ahead of the USDA’s much-anticipated WASDE report, which will shed light on US and global crop supplies and demand.

Dry Weather Lifts Corn Prices

Dry conditions in Argentina have pushed corn prices higher over the past two weeks. However, on the Chicago Board of Trade (CBOT), corn prices in the US are stuck at $0,18 per kg as traders wrap up sales and funds close earlier positions.

Wheat prices in the US, meanwhile, remain low due to ample supply, keeping the market subdued for now.

Production Changes in Argentina and Brazil

The USDA’s upcoming report may adjust production figures, with lower estimates for Argentina and higher ones for Brazil. Despite these shifts, any immediate impact on US prices is expected to be limited.

Focus on US Corn Stocks

Traders are closely watching US corn stock levels. Export sales have already surpassed 60% of the USDA’s forecast for the 2024/25 season. Current carryover stocks are projected at 44 million tons, but analysts suggest they might fall to 37-40 million tons. If the USDA lowers its stock estimate, corn prices in the US could break past $0,18 per kg, which might even give wheat prices a boost.

Soybeans Under Pressure

Soybeans in the US are struggling to stay above $0,39 per kg, with Brazil’s large harvest keeping global supplies healthy. While dry weather in Argentina has caused some concern, the comfortable supply situation is holding prices down.

Key Takeaways

Grain prices in the US could climb if stock levels drop and demand stays strong, but soybeans may continue to face challenges due to abundant supplies. The USDA report will play a key role in shaping market movements over the coming weeks.





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