Grains close in the red:
July Corn –6 1/4 cents/bu (5.55 1/4)
July Soybeans – 3 3/4 cents/bu (13.33 1/4)
July Chi Wheat – 13 3/4 cents/bu (6.11 3/4)
Cdn $ -0.00275 (74.120 cents)
WTI Crude Oil -0.87/barrel (71.96)
Great planting progress looks to be supported by great weather this spring/summer. The NOAA seasonal forecast for June-July-August shown below, with a clear neutral/slightly warmer temp and normal/above normal precipitation outlook likely to materialize. This trending a tad cooler and wetter from previous runs of the forecast. This weather suggests good acres and good yields; however, this could change in a hurry.
Grains continue to waiver under the Grain Corridor renewal, however, the corridor designed to ensure the safe supply of Ukrainian food to world markets has not yet resumed operation despite statements by Turkey and Russia on extending the agreement, a senior Ukrainian official said on Thursday. “The joint centre in Istanbul did not inspect vessels for entry yesterday or today,” Yuriy Vaskov, Ukraine’s deputy restoration minister told Reuters.
Export inspections were out today and showed that old crop exports are dismal. New crop corn and wheat were within expectations, and new crop soybeans pushed well beyond expectations giving us a short-lived stint in the green this morning. Both corn and soybeans had known cancellations from China this week, but that did not soften the blow. This is the second time in three weeks that corn had net cancellations.
The Wheat Quality Council Tour estimated Kansas wheat yields at 30.0 bushels per acre at the conclusion of their three-day tour yesterday, down from a five-year average figure of 45.6 bpa and the lowest since at least 2000, though still above the USDA May estimate of 29.0 bpa. State production was pegged at 178 million bushels (due to expected abandonment), down from 244 mbu last year and below the initial USDA at 191.4 mbu. Despite this poor performance, the reality that the US crop is still priced well above the world market weighed heavily on futures.
Funds were thought to have been all sellers.