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Soybean futures were expected to extend gains as dry conditions in South America threatened yields, with corn and wheat also firmer overnight. Consultant Michael Cordonnier cut Brazil's soybean crop estimate by 2 MMT to 138 MMT and Argentina's by 3 MMT to 45 MMT.
Several Brazilian states declared drought or flooding emergencies, and Malaysian palm oil rose to a four-week high on flooding.
Cuts to Brazilian and Argentine soybean and corn estimates tighten global supplies, supporting feed prices. Palm oil strength on flooding supports vegetable oil prices.
profarmer.comPro Farmer EditorsJan 4, 2022After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
