CORN

Corn futures traded higher overnight led soaring new crop.  Dec was up 5-1/2 cents to a new high of 5.25-3/4.  Nearby May corn fell just short of $6, at 5.99-1/4 on gains of 7-1/4 cents.  July was up 7 cents to 5.87-1/2.  Grains are getting a boost from continued fundamental and technical support, as well as a lower dollar, which was down again overnight.  Though very early in the growing season, the U.S. corn crop is 8% planted, according to yesterday’s Weekly USDA Crop Progress data.  The trade estimate was 9% versus 4% a week ago, 6% last year, and 8% average.  U.S. emergence was 2% versus NA% a week ago, 1% last year, and 1% average.  Questions remain about Brazil’s second corn crop.

SOYBEANS

Soybean futures jumped to double-digit gains for the second consecutive overnight session on follow-through pushing into new contract highs.  Nearby May made it to 14.72-1/4 on gains of 22-1/2 cents.  July hit 14.58-1/4; and, Nov reached 12.96 after rallying 12 cents.  U.S. soybeans planting is 3% complete, in line with the trade estimate versus NA% a week ago, 2% last year, and the 2% average.   Bean meal and soyoil are also higher this morning.  The World climate summit this week could result in higher U.S. green fuel which could increase soyoil biofuel use.

Brazil has suspended import duties on soy, corn, soybean meal, and soybean oil until the end of the year, the Agriculture Ministry said, as the country seeks to slow inflation fanned by rising global commodities prices.  China’s March soybean imports from Brazil plunged as rain delayed some shipments from the world’s top exporter, but U.S. bean imports rocketed more than fourfold as delayed cargoes arrived, hitting the highest monthly total since December 2016. The world’s biggest buyer of soybeans imported 315,334 tons from Brazil in March, down 85% from 2.1 mil a year earlier, data from the General Administration of Custom showed on Tuesday. The Brazilian imports were the lowest since January 2017.  More than offsetting that slide, China imported 7.18 mil tons of soybeans from the U.S. in March, up 320% from 1.71 mil in the previous year.

WHEAT

Wheat futures were up 4 to 6 cents overnight, lifted by the strength in row crops and a lower dollar.  In addition, morning frost and freezing conditions today through Thursday threatens to burn back crops in the HRW region and West TX through the corn belt and far northern Delta and into VA and northern NC.  Spring wheat futures are near Monday’s new highs with July up 5-1/2 cents to 6.77.   July Chicago was up 6 cents to 6.59-3/4.  July KC wheat got to 6-23-3/4.  U.S. Winter Wheat was 10% headed versus 5% last week, 13% a year ago, 14% average, according to USDA’s Weekly Progress update.  U.S. Winter Wheat was rated 53% good to excellent (trade estimate was 52%) versus 53% a week ago and 57% a year ago; 30% fair (30% last week, 30% a year ago); 17% poor to very poor (17% last week, 13% a year ago).  U.S. Spring Wheat planted was 19% (trade estimate was 17%) versus 11% last week, 7% a year ago, 12% average.  Tender activity showed France looking to import 45,000 tons of Romanian wheat.  Japan seeks 85,110 tons of optional-origin wheat.

CATTLE

Author

Matthew Strelow