Corn has reversed from its earlier morning lows and is now trading higher across the board with the front months leading the way higher despite lower wheat prices. Yesterday’s crop progress report showed that planting is ahead of the 5-year average, but historically, planting is at a relatively slow pace.
Highlights from yesterday’s USDA report show that planting is 91% for corn which is up from 83% a week ago, emergence is at 74%, and the first good to excellent rating received this year is pegged at 75%.
In Brazil, StoneX has cut its forecast for the 2024 second corn crop by 3.9% to 93.5 mmt. The second crop corn typically totals about 75% of Brazil’s total corn production, and the cut is due to dry weather.
Soybeans are mixed at midday but have also reversed from earlier lows along with corn. The two front months are trading higher while deferred contracts are slightly lower. Soybean oil is also mixed with slight gains in the front months, and soybean meal is trading lower.
Highlights from yesterday’s USDA report show soybeans plantings at 78% complete which compares to 68% a week ago, and 55% of the crop is emerged which compares to 39% a week ago. The first crop conditions will likely be released this coming Monday.
US soybean crushing for April was seen at 178 million bushels which was down 4.9% from the same time last year. Lower crush margins have been a bearish factor.
All three wheat classes are trading lower today with Chicago wheat leading the way lower, and this would be the fifth consecutively lower close if prices remain lower. Crop progress was relatively bearish for spring wheat with good crop conditions and planting nearly complete.
In winter wheat, the USDA said that 49% of the crop has been rated good to excellent, which is up a point from last week and compares to 36% a year ago. 83% is headed which compares to the average of 78%, and 6% is harvested which compares to the average of 3% for this time.
In Russia, two large consultancies have reduced their estimates for the Russian wheat crop to between 78 and 82 mmt which is well below the USDA’s recent estimate of 88 mmt. Temperatures are hotter than normal, reaching up to 100 degrees and it is dry as well. Russian cash values have increased as production estimates fall.
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