Grain Prices Plunge: Soybeans, Corn, and Wheat Bearish Run Continues

US: Fund and technical selling drives sharp decline in Soybean prices, despite early boost. Slow export demand and crude oil selling contribute to existing weekly losses. Favourable planting weather in Midwest and plains also impacts prices. Brazil remains dominant exporter but may lose ground as prices rise post-harvest.

Argentina's ongoing harvest expected to yield smaller Soybean production due to drought. USDA's upcoming supply, demand and production estimates on June 9th awaited. Soybean meal and Bean oil prices continue to decline, under pressure from Soybeans and crude oil. Early gains in Palm oil and crude oil impacted Bean oil prices but were later offset by suspension of debt ceiling negotiations and broader market movements.

Corn prices fall due to fund and technical selling, concluding week on a negative note. Despite early gains, slow export demand following China’s cancellations and favourable planting weather weigh on prices. US crop expected to be record large, though growing season is ongoing. Brazil also predicted to produce record large crop, but drier pattern or frost/freeze event could hinder harvest.

Fund and technical selling drive Wheat complex prices sharply lower, resulting in significant week-to-week losses. rain in plains too late to salvage Hard Red Winter crop, anticipated to yield multi-decade lows due to drought. Soft Red Winter fares relatively better, while improved planting conditions expected for spring Wheat in Northern plains.

USDA's weekly crop progress and condition report to be released on Monday afternoon. Dry planting weather in Argentina, Canada, and Russia being closely monitored by trade. Russia leads export market with prices at two-year low. Details of 60-day extension for Black Sea grain initiative remain unclear, including potential concessions made to Moscow. Russian inspections of Ukrainian vessels departing agreement-covered ports have slowed down, while attacks near those ports and alleged theft of Ukrainian grain reported. War expected to escalate during summer.