Grains closed in the red:
July Corn – 1 cents/bu (7.68 1/4)
August Soybeans -11 1/4 cents/bu (16.16 1/2)
July Chi Wheat -20 3/4 cents/bu (10.65 1/4)
Sept. CAD$ -0.00470 (77.150)
Crude Oil -2.00 (118.93)
Annnnnnd we end the day still in a risk-off position. That being said, corn managed to ease to just below unchanged to close out the day.
Late this afternoon, Ukraine announced that EU countries may be providing the country temporary storage for the upcoming harvest as their exports struggle to reach the global market. Without this support, the country’s corn storage could see shortages of 15 million mt. Ukraine's ag minister also thinks the winter wheat quantities for next year's harvest could fall significantly, making the 2023/24 year the third where Ukraine's grain supplies are limited to the world. Additionally, Biden says US is also working on a plan to get grain out of Ukraine by rail.
Equities are down again today as the US government is anticipated to increase interest rates by ¾ of a point. Similarly to yesterday, it is difficult to see any positive movements in commodities if the whole market is down.
In addition to the equities, wheat was facing some pressure as reports on Australian wheat show that it could be the second largest crop on record. That would provide ample supply to the global market and decrease the need to ration.
Strong advances in the Upper Plains soybean plantings had the market talking once again about increased soybean acres and lesser prevent plant corn acres today. Conditions show an above average rated crop with 70% G/E for the first rating of the season vs 68% average.
Additionally, wheat faced some seasonal selling pressure as harvest starts in the U.S. slowly starting the increase in domestic supply.
As we continue to move into the summer, the trade will become more focused on weather forecasts and patterns as they will heavily influence yields.
Technically, soybeans struggled as the most-active CBOT soybeans (July22) ended at $16.98 1/2 per bu, their first close below the 20-day average since May 16. Beans have traded completely above the 50-day since May 19 and above the 100-day since Dec. 16, 2021. According to Karen Braun, “Tuesday's low of $16.97 per bushel was 87 cents off Thursday's high, which was just 5 cents off the all-time high for most-active futures set in Sept. 2012”.
Funds were thought to have been all sellers today.