Corn has backed off from its earlier morning highs and is now trading slightly lower despite a wet 10-day forecast for the Corn Belt that could cause further planting delays.
Today’s CPI report said that the consumer price index rose by 0.3% last month after increasing by 0.4% in both February and March. While inflation increased, it rose by less than expected. The stock market reacted favorably, and the dollar index fell.
This morning, forecasts are pointing to three larger rain systems that are expected to move through the Corn Belt over the next 10 days. Corn plantings are already 11% behind a year ago at this time.
Soybeans are trading higher today but along with corn and wheat have slipped from this morning’s highs. Planting delays remain a concern, and both soybean meal and oil are currently higher and supporting soybean futures.
Yesterday, news of new tariffs on Chinese goods such as computer chips, minerals, and EV’s was released. This caused concerns over retaliation from China in the way of fewer imports of US soybeans, and there was disappointment that used cooking oil was not included in the tariffs.
This morning, the USDA reported private exporter sales totaling 180,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 120,000 metric tons are for delivery during the 23/24 marketing year and 60,000 are for the 24/25 marketing year.
Wheat is mixed at midday with the Chicago and KC contracts mostly higher but Minneapolis slightly lower. Futures are down about 15 – 20 cents from their earlier morning highs. July Chicago wheat remains well above its 200-day moving average and made a new high for the year today.
SovEcon has lowered its estimate for the 2024 Russian wheat crop to 85.7 mmt citing losses from unseasonable frost and also reporting that about 1 million of all crops may need to be replanted. This new estimate compares to the previous one of 89.6 mmt.
Yesterday was the first day of the Wheat Quality Council’s HRW Wheat Tour, and they estimated an average of 49.9 bpa, which would be the highest yield in over 10 years.
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