Grains are all over the map to close:
July Corn -10 1/4 cents/bu (7.81 1/4)
July Soybeans + 32 3/4 cents/bu (16.46 1/2)
July Chi Wheat –1 ¼ cents/bu (11.77 1/2)
CDn $ +0.00855 (77.32 cents)
WTI Crude Oil +4.36/barrel (110.49)
Anddddd….. it’s officially the weekend! We know lots of farming will be happening over the next few days so just wanted to wish everyone a safe weekend! The co-op branches will be open Saturday and Sunday (weather depending).
Last Monday we saw a dismal planting progress report, and corn faltered today with the realization that corn progress due to solid weather in the Midwest is likely to exponentially increase by this coming Monday’s report.
Much of the movement today can be attributed to delayed reactions to the USDA report which was released yesterday. Overall, the report was bullish grains which was reflected in the high futures prices upon close yesterday, however, today we are now seeing SOME hesitation in the stocks of whether the news warranted such increases especially in corn and wheat.
As of Friday, most-active CBOT soybeans were trading 3.9% higher than on the same date in 2021, corn 15.8% higher, wheat 67.9% higher, soymeal 2.9% lower and soyoil 27.4% higher.
The shockingly low hard red wheat numbers released in the USDA report will encourage more focus to be diverted to the Wheat Quality Council tour of Kansas posed to start next week. Kansas is a big wheat producer, so it will be interesting to see those results.
This morning we saw the USDA confirm the sale of 132,000mt of US soybeans to China for delivery in 2021/22. This contributed to propping up soybeans today as it reaffirmed the demand story with China.
Funds were thought to be mixed today with corn and wheat sellers (10,000 and 2,000 contracts respectively) and soybeans a buyer of 15,000 contracts. On Tuesday, funds were mostly shorter than expected with soybeans being 18,000 contracts shorter (long 126,000 contracts), wheat being 21,000 contracts shorter(long 16,000) , and corn being 1,000 contracts longer (long 313,000). Funds remain very bullish towards grains and oilseeds.
The Buenos Aires Grain Exchange announced today that they expect Argentina’s wheat crop to fall to 20.5 million mt in 22/23 compared to 22.4 million mt currently. This is attributed to competing commodity prices, and less input costs.
Overall, a news-quiet day for the grain markets as we move into the weekend. Floyd is on vacation next week, so you can expect to hear all of the commentaries from me!