CORN

• Corn futures are lower this morning as the market continues to search for stability following recent volatile price action. July corn is down 3 cents at $4.72-1/4, while December futures are 3 cents lower at $4.94-3/4.
• Grain markets are facing pressure this morning as the market grows uneasy over China’s failure to confirm the Trump administration’s assertion that Beijing had committed to purchasing at least $17 billion annually in U.S. agricultural products through 2028, in addition to its existing soybean purchase commitments.
• China’s Ministry of Commerce stated Wednesday that the two countries had only established a “guiding target” to increase agricultural trade, making no mention of the previously cited $17 billion figure. However, should the White House comments ultimately prove accurate and China resume meaningful corn purchases from the U.S., it would mark a notable shift following nearly two years of subdued Chinese import demand according to USDA data.

SOYBEANS

• Soybean futures are slightly lower this morning, with July soybeans down 3-1/4 cents at $12.06-3/4. November futures are 3-3/4 cents lower at $11.99-1/4.
• China’s U.S. soybean imports in April more than doubled from a year earlier as cargoes purchased after Beijing resumed buying late last year continued arriving at Chinese ports.
• Chinese government data released Wednesday showed the country imported 3.33 mmt of soybeans from the U.S. in April. Soybean imports from Brazil also increased, rising 3.3% year over year to 4.75 mmt.

WHEAT

• The wheat complex is slightly higher this morning, with poor U.S. winter wheat crop conditions continuing to provide support to the broader market. Looking at July contracts, Chicago wheat is up 1 cent at $6.68-1/4, Kansas City is 1/4 cent higher at $7.04, and Minneapolis spring wheat is unchanged at $6.96-1/2.
• Wheat prices continue to find support from the poor condition of the U.S. winter wheat crop, with analysts noting that forecasted rains across the Southern Plains are expected to arrive too late to provide meaningful relief.
• Australian farmers are expected to reduce wheat plantings this season as rising input costs and dry weather concerns pressure profitability. The ongoing Iran conflict has driven fuel and fertilizer prices sharply higher, while forecasts for a developing El Niño raise the risk of drought conditions across key growing regions.

Author

Matthew Lucas