The rollercoaster continues this morning as corn is down 9 and soybeans are down 2 to start the day.
The USDA dropped US corn rating to 65% G/E last night vs. 68% last week. NE led the way at 83% G/E with OH, IN and WI next in line. WI came in at 69% G/E which is down from last weeks 71%. The most notable drops were in MN which was down 8% at 50% and IA which was down7% at 56%. While numbers were down, most expect they will turn higher next week as the rains we received across the corn belt late last week were very beneficial and hadn’t yet impacted the crops as of this survey time.
The weather models are calling for rain across the Central US in the next week. Amounts are in a wide range of 2-6 inches. Illinois and Missouri have the most rain in the forecast and it tapers off as you move West. Its going to be hot in the far Western plains and relatively mild in the Central US. The actual timing of the rain is for this Thursday/Friday and then again around July 4th.
China soybean imports totaled 9.0 million tons in May, lower than last May. On the other hand, June imports are projected at 11.6 million tons, the all-time high monthly imports, primarily due to massive arrivals of Brazilian soybeans (11.4 million tons). In addition, 8.3 million tons of soybeans have departed from the loading ports and will arrive in China in July. According to Refinitiv’s trade flows, the majority of Chinese imports in June/July will be originated from Brazil. Meanwhile, China resumes soybean imports from Argentina and Uruguay in June/July after negligible imports over the past half year.
China’s imports of American goods slowed again in May, putting the purchase targets agreed with the U.S. in the 2020 trade deal even further out of reach. China bought almost $10 billion worth of manufactured, agricultural and energy goods from the U.S. in May, the lowest monthly total since October 2020. That took total imports to almost $157 billion since January 2020, which equates to 41.4% of the targets the two nations agreed at that time.
Producers should be actively making sales ahead of next Wednesdays USDA report. If we get more acres(which is expected) and weather stays the course, this market could have another setback that we don’t rebound from.
Have a Safe Day!