Furthermore, both EU and US corn prices took a hit, while US soybean prices were also seen sliding in the first of its trading session, reported CRM Agri.
In Brazil, recent estimates from Brazilian exporters suggested both soybean sowing and first corn planting were nearly completed and roughly on pace with last year’s levels, they continued.
"This comes despite some recent weather concerns over the weekend, which showed dry conditions continued to linger. Nevertheless, Brazilian organisations continue to predict a record-breaking soybean crop," said those analysts.
Crude oil prices pressuring grain markets
In terms of crude oil markets, they noted that yesterday marked the start of the EU’s embargo on seaborne imports of Russian crude oil.
“Seaborne oil represents roughly 90% of EU imported crude oil from Russia and should bring Russian imports of crude oil into the EU to nearly zero. Moreover, the EU and G7 nations also confirmed a price cap on Russia crude oil imports to limit Russia’s ability to raise funds from crude oil production. This should have a notable impact on Russia’s ability to export crude oil and weigh on production.
“This comes amid OPEC's decision to carry on with their production cuts heading into the new year, at the same time China is easing its Covid-19 restrictions. Despite a deteriorating global supply outlook and healthier demand prospects, crude oil prices continued to fall away today, adding further downward pressure on global grain markets.”