Corn futures are trading lower this morning after the crop progress report showed that the planting pace has been quick. The US dollar is higher as well which could be adding some pressure. Forecasts are favorable for planting over the next week.
Yesterday’s crop progress report saw 24% of the corn crop planted as of last Sunday which is up from 12% last week and compares to the 5-year average of 22%. 5% of the crop has emerged which compares to the average of 4% at this time.
Japan is reportedly considering purchasing more US corn as part of the trade negotiations with President Trump. While there has been an 80% decline in corn exports to China, other countries have picked up the slack keeping demand firm.
Soybeans are trading lower along with corn as markets react to the good weather and fast planting pace seen so far this season. Yesterday’s export report saw that 3 cargoes of soybeans were headed to China which was supportive.
Yesterday’s crop progress showed that 18% of the soybean crop is planted which compared to 3% last week and the 5-year average of 12%. In Illinois, soybean planting is further ahead than corn.
The US dollar fell by 3% last week which impacted soybean trades in South America as US soybeans became relatively cheaper. This caused spot prices to decline both in South American and the US.
All three wheat classes are trading higher this morning and have reversed after both Chicago and KC wheat made new contract lows yesterday. Export inspections yesterday were the largest since September which could be adding to support today.
The spring wheat crop was 30% planted as of Sunday which compared to 21% last week and the 5-year average of 21%. 5% of the crop is emerged which is on par with the 5-year average.
Winter wheat crop ratings were improved at 49% good to excellent which were up 4 points from last week and are on par with a year ago at this time. 27% of the crop is headed which is ahead of the 5-year average of 22%.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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