The extended US forecast looks mostly favorable as the 6-10 day now shows above normal temperatures and drier across the Midwest. This will help corn and soybean planting progress, but the drier forecast is not offering any relief for wheat in the plains. Yesterday we saw wheat finish 10 higher which pulled corn 3 higher. This morning corn and wheat are both trading 3-4 higher and soybeans are 6 higher.
We have seen little to no premium added to the corn and soybean markets based on US weather and planting delays to this point. If current forecasts hold true, I don’t expect we will see any. However, weather premiums could come from South America. Dryness in the southern third of Brazil is causing concern for their second corn crop(Safrinha). The potential for lower Brazilian production is making US corn more competitive in the world market and could add to our export demand.
Trade tensions between the US and China continue to limit soybean exports with tariffs looming. China’s purchases of US soybeans have come to a halt following last week’s anti-dumping move on sorghum rattles the industry. Chinese buyers who consume 60% of the world’s soybeans have not signed a new deal to take US soybeans. Traders will continue to monitor this situation as they look for implementation or resolution of the pending tariffs.
Producers are advised to continue to have firm offers in place on old and new crop corn before you head to the fields.
Have a Safe Day!