CORN HIGHLIGHTS:

• The corn market posted moderate gains Wednesday, supported by broader strength across the grain complex and positive ethanol-related news. May corn gained 4 ¾ cents to 467 ¾, and July corn added 5 ¼ cents to 477 ¾.
• The EPA announced it will allow nationwide E15 sales through the summer months in an effort to help curb elevated gasoline prices and reduce market volatility. While earlier than typical, similar E15 extensions have been implemented in each of the past four years.
• The Trump administration confirmed a rescheduled date for the Trump–Xi summit in China, now set for May 14–15 after a recent postponement. The news provided support to soybean prices, which in turn lent spillover strength to corn.
• Weekly ethanol production rebounded to 328 million gallons for the week ending March 20. Corn usage for ethanol totaled 110 million bushels (15.76 mb/day), running slightly ahead of the pace needed to meet USDA’s 5.6 billion bushel target for the marketing year.
• The USDA will release its weekly export sales report Thursday morning for the period ending March 19. Corn export demand is expected to remain supportive, as U.S. corn continues to hold a competitive edge in the global market. Last week’s report showed new crop sales at 46.1 million bushels.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher with support from soybean oil amid optimism over biofuel blending mandates and the upcoming Trump-Xi meeting. May soybeans gained 16-3/4 cents to 1171-3/4 while November gained 6-1/4 cents to 1150. May soybean meal lost $2.60 to $319.80 while May soybean oil gained 1.37 cents to 67.10 cents despite lower crude oil.
• Soybean prices found additional support after White House Press Secretary Karoline Leavitt confirmed that President Trump and Chinese President Xi Jinping are scheduled to meet on May 14. Xi is also expected to visit the U.S. later this year, fueling optimism around potential progress on a trade agreement.
• On Friday, the White House will host its celebration of agriculture event, and there are rumors that biofuel blending mandates will be released by the EPA on that day or before. This has been very supportive to soybean oil but may be a “buy the rumor, sell the fact” situation as prices are already elevated.
• China and Brazil have agreed to ease their soybean sanitary requirements which had temporarily caused a pause in exports from Brazil to China. A large number of cargoes failed to pass sanitary inspections according to Brazil’s Ag Ministry.

WHEAT HIGHLIGHTS:

• After another day of two-sided trading, wheat moved higher into the close, led by the HRW class. Paris milling wheat futures offered support by posting bullish key reversals. Additionally, higher corn and soybean futures may have spilled over some support into the wheat complex. In the May contract, Chicago gained 7-3/4 cents to 597-3/4, Kansas City climbed 13-3/4 cents to 617-3/4, and MIAX was up 9-1/2 cents at 640-3/4.
• Both the 6–10 and 8–14 day forecasts continue to call for precipitation across the U.S. Plains. Improved moisture should help ease drought conditions and support crop development as wheat emerges from dormancy.
• SovEcon has increased their 25/26 Russian wheat export forecast by 1.1 mmt to 46.5 mmt. For reference, this is above the USDA’s estimate of 43.5 mmt. SovEcon also raised the 26/27 forecast by 2.1 mmt to 43.8 mmt. Stronger demand and a weaker Ruble are cited as the reasons for the increase.
• Kazakhstan has reportedly prohibited imports of Russian feed wheat after an outbreak of cattle diseases in regions along the border between the two nations. Other grains used for animal feed are also said to have been banned.
• Goldman Sachs noted that any disruption to fertilizer shipments through the Strait of Hormuz could have broader implications for global grain markets. In particular, nitrogen shortages could pressure yields. While many U.S. producers are likely insulated due to pre-purchasing, the risk may be more pronounced for Southern Hemisphere producers such as Australia and Argentina.

DAIRY HIGHLIGHTS:

• Class III milk futures posted gains in today’s session, with May futures rising 40 cents to close at $17.99.
• Spot cheese declined 0.75 cents, settling at $1.60625/lb, while spot whey gained 2 cents to close at $0.680/lb.
• Class IV milk futures also moved higher, with May contracts up 37 cents to close at $21.07.
• In the spot market, butter gained 0.25 cents to settle at $1.8175/lb, while powder increased 1.25 cents, closing at $1.9225/lb.

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Author

John Heinberg