Corn is trading higher this morning with the July contract now just 4 cents off the high made on March 28 following the grain stocks report. The delays in planting progress are likely adding to support as rains continue to fall in the Corn Belt.
The first week of May is typically when the most planting progress is completed, but if conditions remain wet, the work will likely slow. The 8 to 14-day forecast shows above normal precipitation in the Corn Belt.
Yesterday’s ethanol production report showed an increase in production to 987k barrels per day and is up 4.1% from a year ago at this time. 468.8 mb of corn were used fort ethanol in March which is up 7.5% from a year ago.
Soybeans are trading higher for the second consecutive day after reversing off of yesterday’s lows and ending higher which was technically bullish. July soybeans are trading right at the 50-day moving average, and both soybean meal and oil are trading higher.
Yesterday, the USDA released its monthly oilseed report which showed 204 mb of soybeans crushed in March. This was 2.9% higher than this time last year.
There are beginning to be concerns over the progress of the Argentinian soybean harvest which is being delayed by rains and could impact yields. In Brazil, soybean basis levels are rising as well which is supporting futures.
All three wheat classes are trading higher this morning and are being led by KC wheat which Chicago’s gains are not far behind. World weather in wheat growing regions has been a main factor behind the higher prices recently.
Forecasts for Russia and the Black Sea region initially showed better rain chances over the next week, but are drying up as time passes. In the US, Kansas, Texas, and Oklahoma are also in need of rains for the winter wheat crop.
Egypt reportedly expects to import up to 5.7 mmt of wheat in the 24/25 marketing year and has bought 1.1 mmt domestically since April. Their current wheat stockpiles should last 3 months.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
