Crop Market Update, March 3, 2014

Global events have been impacting U.S. crop markets over the last few days. The turmoil in Ukraine, a major exporter in both corn and wheat, has some fearing that their exports may suffer and has contributed to a jump in both corn and wheat prices in the last few days. Corn markets are also being boosted by a strong export sales report by the USDA on Friday while increasing gas prices is helping to support the ethanol market. Nearby corn futures are up nine cents from a week ago, closing at 4.60 on Monday afternoon.

While the trouble in Ukraine has been the major driver for wheat, cold weather in the Plains states has also contributed to the price rally on fears of winterkill. Current forecasts are calling for continued cold weather throughout the Plains over the next week. Thanks to a 27 cent gain today nearby wheat futures are up nine cents from last Monday, making up for sharp losses to end last week.

Soybean markets are being boosted by the corn and wheat markets, but are also being driven by short supplies and strong demand. The Brazilian soybean harvest is estimated to be around 30% complete, but progress is being slowed by rainy weather. Nearby soybean futures are up 19 cents from a week ago at 14.05