Corn and soybeans are weaker this morning with corn down 3 and soybeans down 18.
The Chinese capital Beijing extended its work-from-home requirement for many of its 22 million residents to stem a COVID-19 outbreak, while Shanghai deployed more testing and curbs to hold on to its hard-won “zero COVID” status after two months of lockdown. Six of the city’s 16 districts have told all residents to work from home and avoid gatherings and said those who have to go to work should have a negative PCR test taken within 48 hours.
Ukraine hopes to export 1.5 million metric tons of grain this month, up from just over 1 mmt in April. I think that 1.5 mmt may be overly optimistic, but they could come close to that target, as they continue to make improvements in the logistics necessary to move grain over land to the west. Even so, that’s still less than a fourth of their monthly exports prior to the war. Spring planting is in its final stages in Ukraine amid shortages of fuel, fertilizer, and chemicals.
Planting progress should show corn at close 70% planted and beans at close to half. The weather over the next 10 days will remain wet. If the crop were planted this forecast would be bearish, but it is not. Canada is also seeing planting delays and their forecast is wet as well. High corn prices are doing their job and pushing producers in the Dakotas and Minnesota to plant corn past their prevent plant dates as returns are greater than PP payments.
Have a Safe Day!