CBOT weekly outlook: Large South American crops looming

Published: 2 hours ago

CBOT weekly outlook: Large South American crops looming

Soybeans

Soybean futures at the Chicago Board of Trade moved off nearby lows during the week ended Jan. 21, as solid export sales and talk of movement on biofuel blending requirements in the United States provided support. However, the advancing South American harvest may limit further gains.

• March soybeans gained roughly 25 cents per bushel over the past week, closing above its 20-day moving average for the first time since late November. The next upside target from a technical standpoint is seen at US$10.70 per bushel and then again at US$11.00.

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• U.S. Treasury Secretary Scott Bessent reportedly met with Chinese Vice Premier He Lifeng in Davos, Switzerland, at the World Economic Forum. China recently reached its commitment of buying 12 million tonnes of U.S. soybeans, and confirmation of more business could help pull the futures higher.

• However, Brazil’s soybean harvest is in its early stages, with reports out of the country pointing to a possibly record-large crop. The U.S. Department of Agriculture recently estimated Brazilian soybean production at 178 million tonnes, while some private estimates have topped 180 million. • The U.S. Environmental Protection Agency will soon release its final rule for blending requirements for 2026 and 2027. Proposals for renewable/biodiesel blending quotas are expected to be close to what was initially proposed by the EPA in June, including 5.6 billion gallons of bio-based diesel. would be close to EPA s initial proposal in June.

Corn

Corn futures have shown some modest strength over the past week, consolidating after the sharp selloff following the bearish production and stocks estimates from the USDA released Jan. 12.

• March corn appears to have uncovered support around US$4.20 per bushel but remains 10 to 20 cents below its major moving averages — settling at US$4.2175 on Jan. 21.

• Geopolitical uncertainty may keep some caution in the corn market in the near term, with movements in crude oil and the U.S. dollar likely to provide direction.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

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