Grains are higher in overnight trading:

Corn + 2 ¼ cents/bu (May @ 5.71 ¼ )

Soybeans + 6 ¼ cents/bu (May @ 13.88 ¼ )

Chi Wheat + 4 cents/bui (May @ 6.32)

Cdn $ -0.00360 (79.25 cents)

WTI Crude Oil +0.29/barrel (59.99)

We are seeing a modest “Turnaround Tuesday” rally in grain prices after Monday’s significant sell off.  Overnight both corn and soybeans have traded both sides of unchanged, while Chicago wheat futures have been in the black for the entire session.  Yesterday saw soybean values take the biggest hit, based on softening Chinese soy prices.  Despite Friday’s friendly USDA April Supply and Demand Report for corn, the lack of new export demand, and the fact that last week’s actual corn exports were the “slowest” since mid February allowed old crop corn prices to close on their lows.  The funds hold massive long positions in corn and soybeans, so any major market moves are accentuated by that fact.

While old crop corn and soybeans will need to see positive demand news in order to re-test market highs, new crop corn and beans will continue to be supported by 2021 acreage needs, and fears that any weakening in prices could negatively impact grower seeding decisions.  USA corn planting sits at 4% complete through Sunday night, and cooling temperatures throughout the Midwest this week will likely temper the pace at which farmers get more seed in the ground.

USDA weekly crop conditions showed the winter wheat crop as unchanged over the last week, rating 53% good/excellent.  Most states saw unchanged or improved conditions, but those were offset by rating drops in the Texas and Oklahoma wheat crop.

Yesterday saw very scattered showers in the USA Midwest, with forecasts looking a little drier this morning, and temperatures continuing to be well below normal for the balance of April.  Argentina will be dry for the rest of the week, until decent rains are forecast to move into western crop areas next week.  Brazil will see some precipitation in western regions this week, with good rains moving into central production zones late this week, early next week.  Southern areas look to remain very dry.