January 10, 2024 [The Observatorial]-Chicago. U.S. corn futures sank to their lowest level in more than three years on Monday and soybean futures hit a two-year low as the sharp drop in crude oil prices trickled into agricultural markets, they said. the analysts.
Technical sales and favorable rains in Brazil’s rainfed growing areas contributed to the drop in grain prices, after soybeans fell last week on improving harvest prospects in South America. The losses were a blow to American farmers who will plant their next crops in the spring, but they benefit ranchers who must buy grain and soybeans to feed their animals.
If the crude oil market continues to decline, it is very difficult for cereals to recover
explained Jim Gerlach, president of the A/C Trading brokerage.
Oil prices fell as much as 4 percent. The losses hit agricultural markets, as corn is used to make ethanol and soybean oil for biofuels.
Chicago Stock Exchange Cv1 corn futures fell 5.75 cents to $4.55 a bushel; its lowest price since December 2020. Soybeans fell 14 cents, to $12.4225 a bushel, hitting their lowest since December 2021. Wheat fell 20 cents, to $5.96 a bushel.
Grain traders adjusted positions before the U.S. Department of Agriculture updates its estimates in a monthly report due Friday.
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