Chicago Close: Corn, Soybeans Fall on US Acreage Ideas

Corn, wheat and soybean futures all began March on a losing note, undermined in part by ideas of big US new-crop acres.

Acreage ideas were boosted by US crop insurance policies for the 2021 growing season, which were announced today by the USDA. For soybeans, the spring price was announced at $11.87/bu, up nearly 30%, or $2.70/bu from a year earlier and the highest in eight years. Losses in soybeans were limited by continued slow harvest progress in Brazil due to rain. May soybeans fell 13 cents to $13.91 ¼ and November lost 3 ¾ cents to $12.19 ¼.

For corn, the 2021 corn crop insurance price was announced at $4.58/bu, up 18%, or 70 cents/bu. The 2021 spring price for corn is the highest since $4.62 in 2014. In 2020, the spring crop insurance prices for corn and soybeans were near the lowest levels of the last decade. May corn fell 9 ¼ cents to $5.38 ¼ and December lost 2 cents to $4.68 ¾.

Wheat fell amid SovEcon’s upward revision to its 2020-21 Russia wheat export forecast to 39.1 million tonnes, an increase of 1.2 million tonnes. May Chicago wheat lost a dime to $6.50 ¼, May Kansas City dropped 10 ½ cents to $6.23 ¼ and May Minneapolis fell 5 ¼ cents to $6.33 ½.

Live cattle ended lower today. Lean hogs were higher.

Source: DePutter Publishing Ltd.

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