CORN HIGHLIGHTS:

• The corn market remained under pressure on Thursday, as selling in the wheat market and concerns over ample supplies weighed on prices. May corn lost 3 ¼ cents to 444, and July corn lost 3 cents to 455. Going into Fridy trade, May corn futures are down 8 ¼ cents on the week, looking at a fourth consecutive lower weekly close.
• USDA released the April WASDE report on Thursday morning. The corn balance sheet remained unchanged from the March report, leaving carryout at 2.127 BB.
• USDA released weekly export sales on Thursday morning.  For the week ending April 2, total reported new sales reached 1.361 MMT (57.2 MB). This total was in the middle of analysts estimated, but still above average overall. Japan was the largest buyer of U.S. corn that week.
• USDA announced a flash sale of corn on Thursday morning. South Korea bought 135,000MT of corn for the current marketing year as corn exports out of the PNW remain very competitive on the global market.
• The Rosario Grain Exchange raised their forecast for the Argentina corn crop from 62 MMT to 67 MMT, approximately 200 mb in a larger than expected planted area. The USDA is forecasting the Argentina corn crop at 52 MMT.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher following an uneventful WASDE report and strength in both soy products with soybean oil following crude higher. Crude oil may have seen a boost due to very slow traffic through the Strait of Hormuz with May crude oil up $3.82 to $98.19 per barrel.
• May soybeans gained 3-1/4 cents today closing at $11.65-1/4 but remain rangebound. November soybeans gained ½ cent to $11.52-1/2. May soybean meal gained $3.50 to $317.60 and May soybean oil gained 0.28 cents to 67.70 cents. Today’s WASDE report saw 35 mb of soybean use move from exports to crush demand.
• Today’s WASDE report held virtually no changed for soybeans. U.S. ending stocks remained unchanged at 350 million bushels while world ending stocks were slightly increased from last month to 125.3 mmt from 124.8 mmt. Both Brazilian and Argentinian soybean production were left unchanged at 180.0 mmt and 48.0 mmt respectively.
• An extended peace deal with Iran could free up President Trump to meet with China’s President Xi as planned in mid-May. This could open the door for China to purchase more old crop U.S. soybeans. Without more Chinese purchases, the USDA could lower export demand for soybeans.

WHEAT HIGHLIGHTS:

• Wheat posted losses today, primarily because of bearish USDA data. The lower close comes despite weakness in the U.S. Dollar and renewed uncertainty about the Iran peace agreement, after Israel attacked Lebanon. In the May contract, Chicago lost 5-3/4 cents to 574-1/2, Kansas City declined 4-3/4 cents to 590-1/2, and MIAX fell 5-3/4 cents to 618-1/4.
• On today’s WASDE report, U.S. 25/26 wheat ending stocks were pegged at 938 mb, which was an increase of 7 mb from last month; the trade was looking for a 10 mb decline. Global numbers were also bearish, with world 25/26 wheat carryout coming in at 283.1 mmt, versus 277.0 mmt last month, and an average pre-report estimate of 277.3 mmt.
• The USDA reported an increase of 6 mb of wheat export sales for 25/26, and an increase of 3.3 mb for 26/27. Shipments last week totaled 13.6 mb, which exceeds the 11.3 mb pace needed per week to reach their 900 mb export goal. Total 25/26 wheat export commitments have reached 892 mb, up 14% from last year.
• According to the USDA, as of April 7, an estimated 68% of U.S. winter wheat acres are experiencing drought conditions. This is a 3% increase from the week before. Spring wheat, on the other hand, saw a reduction in drought conditions for the first time in several weeks. An estimated 18% of that crop is in drought, down 3% from the previous week.

DAIRY HIGHLIGHTS:

• Buyers pushed the nearby Class IV contracts up very strongly today, led by 79 cents of gains for June futures.
• Spot powder hit a new high for the move at $2.06/lb with another 3.50 cents of gains. Butter was up a penny.
• The April through August Class III futures were down between 10 and 17 cents, but it was mixed beyond that. May closed at $17.00.
• Spot cheese lost another 1.50 cents to settle at $1.5625/lb while whey was unchanged.

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Author

Amanda Brill