Good Morning,

Tensions continue to build with China over its responsibility, or lack thereof, in the coronavirus spread. The tensions are currently just a war of words, but the United States is considering asking the World Health Organization to add Taiwan to its board. China would consider that an insult, as it considers Taiwan to be a rebellious state of its own. Despite the war of words, China continues to buy U.S. commodities. The USDA confirmed this morning that China bought another 13.9 million bushels of U.S. soybeans in the past 24 hours, with roughly two-thirds of those for delivery after September 1st. This comes as no surprise, since Brazilian soybeans will be tight by August or September, with additional supplies not coming until its harvest starting in January and February. So, China is buying cheap soybeans that it needs, and perhaps more, simply because they are cheap currently.

Corn planting progress surged ahead last week despite soggy conditions in the Central Corn Belt that temporarily halted planting. As of May 3, 51% of the U.S. corn crop was in the ground. The figure eclipsed last week’s total of 27% as well as the 5-yr average of 39%.
Soybean progress also surged ahead last week with 23% of the crop planted, up from 8% a week ago and leaps and bounds ahead of the 5-yr average of 11%. Planting progress in virtually all states is far ahead of the curve this spring, with the glaring exception being North Dakota.

Have a Safe Day!

Garry Gard