Grains are higher in the overnights:
July Corn +15 1/2 cents/bu (7.96 3/4)
July Soybeans + 14 cents/bu (16.60 1/2)
July Chi Wheat +51 1/4 cents/bu (12.28 3/4)
CDn $ +0.00035 (77.355 cents)
WTI Crude Oil -0.75/barrel (109.72)
I hope everyone is enjoying a well-deserved break today as we get some rain! With more sunny weather in this week’s forecast, it is looking like we will have another busy week ahead.
Today we will get the crop planting progress report which is expected to show major increases since last week. Last Monday corn was 22% planted, soybeans 12% and spring wheat 27%. With favourable weather conditions across much of the Midwest, it is expected that this week’s numbers will majorly jump, potentially putting pressure on futures. The report last week was favourable to futures as it showed that much of the crops had not been planted yet which evoked concerns about un-ideal planting windows and lower yields. That being said, if progress numbers don’t reach the 5-year average, that could be construed as bullish.
Wheat has earned major support over the weekend as India announced a ban on wheat exports out of their country after a heat wave damaged some of the growing crop. Aside from the sales they already have on, India announced that they are keeping all domestic wheat within the country to support food security and try to cope with high inflation. Since the Russia-Ukraine war, India has picked up much of the slack as the exports slowed out of the Black Sea region. With this pattern, the USDA estimated the country exporting a record 8.5 million mt in the 22/23 crop year- which is EXTREMELY overexaggerated now. (This year their exports grew from 2.6 million mt to 8 million mt). This decrease on available global supply has potential to boost wheat futures as the trade digests this news.
Just a friendly reminder that Floyd is on vacation this week, so you can expect to hear all the commentaries from me (whether that is good or bad is up to you! 😉) ! If you have any market-related questions or want to chat, please feel free to reach me at the Wanstead branch 519-845-3301 or on my cell 519-328-2623.