Corn is trading lower this morning after yesterday’s mixed trade which saw prices down in the earlier part of the day before recovering into the close. While prices have been depressed, December corn has found strong support at the $4.03 level.
Yesterday, the USDA released its Crop Progress report which showed the good to excellent rating in corn up one point to 68%. There were improvements on South Dakota, Iowa, Illinois, Indiana, and the rest of the eastern Belt. Conditions in the West slipped.
Yesterday, the USDA said that 77% of the crop was silking which compares to 61% a week ago and the 5-year average of 76%. 30% was doughing which compares to 17% last week and the 5-year average of 22%.
Soybeans are starting the day lower again after yesterday’s move lower which then saw prices rebound by the end of the day. Both soybean meal and oil are lower this morning, and yesterday’s selloff in bean oil dragged futures lower.
Last Friday, there was a ruling from the DC appeals court that brought a win to small refineries that were trying to get exemptions from the RFS. This negatively impacted soybean oil, but soybeans have fallen by a larger percentage which has improved processing margins.
Yesterday’s Crop Progress Report showed soybean ratings falling by 1 point to 67% good to excellent. 44% of the crop is setting pods which compares to 29% last week and the 5-year average of 40%. 77% of the crop is blooming which compares to 65% last week and the average of 74%.
All three wheat classes are trading lower this morning with hard red winter wheat leading the way lower and making a new contract low. Spring wheat conditions were lowered, but the markets have not reacted bullishly.
Yesterday’s Crop Progress report showed the good to excellent rating for spring wheat falling by 3 points to 74%. While this is a more significant change, ratings are still well above last year’s 42% rating.
In winter wheat, 82% of the crop is now harvested which compares to 76% last week. In spring wheat, harvest has just begun and is 1% complete which compares to the 5-year average of 3% done. 94% of the spring wheat crop is headed which compares to 89% last week and the 5-year average of 96%.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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