CORN HIGHLIGHTS:

• Corn futures saw good buying strength as prices finished with moderate gains, as a breakout rally in wheat futures and strong energy prices supported the corn market. July futures gained 6 ¼ cents to 475 ½, while the December contract added 6 ¼ cents to 495 ¾ cents.
• July corn futures have closed higher in 6 of the last 7 sessions, posting the highest daily close since March 26 on Tuesday. That strength leaves the door open for follow-through buying into the night session as prices challenge nearby resistance.
• Corn planting progress is still running ahead of the 5-year pace, as 25% for the crop was planted as of April 26. This was 6% above the 5-year pace, and 3% above last year. Recent wet weather has impacted the planting pace in IA versus last year, with 22% of the crop planted versus 32% last year. The northern areas of the Corn Belt have been impacted most by wet and cool weather overall.
• Poor crop ratings and technical buying fueled a strong wheat rally on Tuesday, spilling over to support the corn market.
• Weather forecasts for Brazil’s corn crop are turning unfavorable, with moisture deficits emerging following late planting. Ongoing dryness raises the risk of lower production and could tighten export availability out of Brazil this summer.

SOYBEAN HIGHLIGHTS:

• Soybeans ended mixed in a bear-spreading session, rebounding from earlier lows. May soybeans fell 4-1/4 cents to $11.73, while November futures gained 1-1/4 cents to $11.67. May soybean meal declined $0.40 to $333.40, while May soybean oil added 1.12 cents to 73.38 cents. First notice day for May grains is this Friday.
• Soybean oil found support from a sharp rally in crude oil, with prices up roughly $3.85 near $100 per barrel. The move was driven by escalating geopolitical tensions and disruptions through the Strait of Hormuz, alongside news that the OPEC alliance is weakening after the United Arab Emirates announced plans to exit, a shift that could increase long-term volatility in energy markets.
• The Crop Progress report showed that 23% of the soybean crop was planted compared to 12% a week ago, 17% last year, and the 5-year average of 12%. This puts planting well ahead of schedule. 8% of the soybean crop is now emerged which is ahead of schedule as well.
• The Brazilian soybean price advantage that it has held over US soybean prices has narrowed recently making U.S. soybeans more competitive on the global market. The current spread of 50 cents a bushel on an FOB basis is lower than the 5-year average for this time of year.

WHEAT HIGHLIGHTS:

• Wheat posted a strong session, with all three classes recording double-digit gains. In May contracts, Chicago rose 27-1/2 cents to $6.49, Kansas City gained 29-1/2 cents to $6.96-3/4, and Minneapolis rallied 21-1/2 cents to $6.97-1/2.
• Prices were supported by ongoing drought in the U.S. Southern Plains, firm energy markets tied to geopolitical risk, and strength in Paris milling wheat futures, while fund buying added to momentum. All three classes are now technically overbought, leaving the market vulnerable to a near-term correction.
• Yesterday’s USDA Crop Progress report showed winter wheat conditions unchanged at 30% good-to-excellent, well below 49% last year, while poor-to-very poor ratings increased 2% to 35%. An estimated 34% of the crop is headed, ahead of 25% last year and 21% on average, while spring wheat planting reached 19% versus 28% a year ago and 22% average, with emergence at 5%, in line with last year and slightly above average.
• With the recent rally, U.S. wheat is now priced at a premium on the global market. U.S. Gulf HRW offers are reportedly near $1.60/bu above comparable EU and Russian values. That spread raises the risk of increased imports into the southeastern U.S., which would be viewed as demand-negative and could pressure futures going forward.

DAIRY HIGHLIGHTS:

• Milk futures pulled back on Tuesday on a relatively quiet spot trade and a lack of new news.
• Both cheese blocks and cheese barrels finished the day unchanged on no loads traded. There were no bids or offers.
• The spot powder market was bid 0.50c higher to yet another new all-time high of $2.2650/lb on 2 loads traded.
• After briefly closing above the $19.00 barrier, July milk fell 20c and closed down to $18.82.
• Spot whey added 0.50c to $0.7075/lb while butter gained 0.75c to $1.6950/lb.

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Author

Brandon Doherty