Analysts said that corn and soybean futures in the US tumbled to three-year lows on Thursday on expectations of oversupply in South America, and concerns about demand. 

Wheat futures were volatile, garnering support from anticipation of additional US sanctions on Russia, the world’s top wheat producer. 

Corn and soybean futures sustained heavy losses throughout the year in the Chicago Exchange as the harvests proved resistant in South America despite difficult weather. 

The Buenos Aires Grains Exchange said in a report this week that expected rainfall in the next few days in the Pampas region in Argentina will boost the soybean and corn crops there. 

It’s expected that soybean harvests will reach 49.5 million tonnes, while corn will reach 57 million tonnes this year in Argentina, a big improvement from last year. 

US corn harvest also spiked in 2023, in turn increasing grain inventories, while weaker Chinese demand on animal fodder hurt prices. 

IKON Commodities analysts in Sydney expect more extensive losses as South American harvests continue to expand and be exported worldwide. 

Corn

Corn May futures slid 1.2% by the end of the session to $4.18 a bushel. 

Soybean

Soybean futures due in May fell 1.1% today to $11.52 a bushel.

Wheat

Wheat May futures rose 0.2% at the close to $5.79 a bushel. 

The Energy Information Administration reported a buildup of 3.5 million barrels in US crude stocks last week to 443 million barrels, while analysts expected a build of 3.9 million barrels.

Gasoline stocks fell 0.3 million barrels to 247 million barrels, as distillate stocks fell 4 million barrels to 121.7 million barrels. 

Nickel prices rose in Shanghai by over 3% on Thursday to a three-week high amid concerns about potential US sanctions on Russia that could hurt supplies. 

Nickel March futures at the Shanghai Futures Exchange closed 3.2% higher at 131,320 yuan per tonne, scaling January 29 highs. 

Nickel three-month futures at the London Metals Exchange rose to $16,990 a tonne, after a 3.6% surge in the previous session. 

US President Joe Bidewn said that Washington is preparing a big batch of new sanctions against Moscow on Friday, in turn triggering speculation on metals exported by Russia. 

Russia is the main producer for nickel and aluminum, with nickel mainly used in stainless steel manufacturing and new energy batteries. 

Risk appetite also improved after China’s central bank announced the biggest cut ever for mortgage interest rates to underpin the market. 

As for other metals, aluminum rose 0.6% to $2232, while copper added 0.6% to $8591, as zinc rose 0.8% to $2412, while lead rose 0.3% to $2083, while tin rose 0.4% to $26,395. 

Dollar stabilized against main rivals ahead of important manufacturing and services data for major economies worldwide. 

The dollar index stabilized at 104.04 as of 16:40 GMT, with a session-high at 104.1, and a low at 103.4. 

Nickel spot prices rose 2.8% in American trade as of 16:51 GMT to $16.972 thousand a tonne. 

Oil prices fell in European trade on Thursday off three-week highs on active profit-taking.

Prices are also pressured by US oversupply concerns especially as demand weakens, while earlier initial data showed a surge in crude inventories. 

Now traders await official data from the EIA later today, expected to show an inventory buildup for the fourth week in a row. 

Global Oil Prices

US crude fell 0.9% to $77.33 a barrel, while Brent shed 0.8% to $82.45 a barrel, with a session-high at $83.46. 

On Wednesday, US crude rose 1.1%, while Brent added 0.8%, edging near three-week highs.

US Crude Stocks 

Initial data from the American Petroleum Institute showed commercial crude stocks rose by 7.2 million barrels in the week ending February 16, the third buildup in a row, while analysts expected a build of 3.5 million barrels. 

Thus total stocks rose to 449.3 million barrels, the highest since mid January, in a negative sign for US demand. 

Now traders await official EIA data today, still expected to show a build of 3.5 million barrels. 

The Fed 

The Federal Reserve’s policy meeting showed that policymakers dismissed the odds of early rate cuts unless inflation proved to be moving sustainably towards 2%.

Following the minutes, the odds of a 0.25% US interest rate cut in March tumbled to just 4.5%, while the odds for a May cut fell to 37%, as the odds for a June cut fell to 71%.

Higher US rates hurt growth and economic performance and could weigh on fuel demand.