Corn is trading lower again this morning and is on track for a sixth consecutively lower close if prices do not recover. Pressure is coming from yesterday’s USDA data that showed another jump in planting progress.
Yesterday’s Crop Progress Report showed that 91% of the corn crop is planted which compares to 83% last week and the 5-year average of 89%. 75% of the crop is emerged which compares with 58% a week ago and the average of 73%.
While planting progress is acting as a bearish factor, a closer look at the numbers will show that 91% of the crop planted as of May 31 is actually one of the slowest paces in history which is closer to 2022 and 2011 but beats 2019. 2019 and 2022 are both included in the 5-year average we are comparing to.
The USDA gave its first impression on crop ratings giving corn a good to excellent rating of 75% which compares to the trade guess of 70% and 64% a year ago.
Soybeans are trading lower again today as the downward slide continues pressured by South America’s harvest and the seemingly good planting conditions in the US. Soybeans meal is trading higher this morning while soybean oil is slightly lower.
Yesterday’s crop progress report said that 78% of the soybean crop has been planted which compares to the trade guess of 80%, 68% a week ago, and the 5-year average of 73%. The crop is 55% emerged which compares to 39% a week ago and the average of 52%.
US soybean crushing for April were 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 this morning as they continue to work down from their recent contract highs. Funds are likely adding new shorts, but producers are likely hedging new crop as well which could be adding pressure.
For spring wheat, yesterday’s Crop Progress Report said that 94% of the crop has been planted which compares to 91% a year ago and the 5-year average of 90%. 78% of the crop is emerged which compares to the average of 69%, and 74% has been rated good to excellent which compares to 64% a year ago.
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.
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.
