CORN HIGHLIGHTS:

• Money flow pushed the corn market higher to start the week as technical buying and strength in the soybean market provided momentum. July corn finished 5 ½ cents higher to 485 ¾, Dec corn added 5 ¾ to 504 ½.
• Weekly export inspections for corn remain strong. For the week ending April 30, USDA reported export inspections at 2.028 MMT (79.8 mb), which was above expectations. Current inspections are trending 31% over last
• StoneX raised their projections for the Brazil corn crop to 137 MMT, up 1.3 MMT from last month. With a large, planted area, Brazil production could remain very strong despite some weather concerns for delayed planting.
• S. corn basis levels reflect large supplies in the western Corn Belt following last season’s record production. Firm old-crop pricing highlights strong demand, though elevated transportation costs to move bushels east continue to influence regional values.
• USDA will release the Crop Progress report Monday afternoon, with expectations for corn planting near 40% complete. That pace would be ahead of last year and above the five-year average.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day sharply higher led by soybean oil and fears of further escalation with Iran. July soybeans gained 19-1/2 cents to $12.22-3/4 and exceeded the level before the limit down move on March 16. November soybeans gained 14 cents to $11.96-3/4 but briefly exceeded the $12 mark. July soybean meal gained $1.60 to $320.90 while July soybean oil gained 1.37 cents to 76.53 cents.
• The USDA released its monthly oilseed report, which showed soybean crushings for the month of March at 227.5 million bushels, up 10% from the same period last year. Increasing crude oil prices and increasing demand for soybean oil has been a major factor supporting soybean prices. The increased crush could create a glut of soybean meal, however.
• Malaysian palm oil stockpiles for the month of April fell to their lowest levels in 8 months due to demand for more biofuels, similar to soybean oil. Despite the strong production, demand exceeded, and inventories fell by 0.4% from the previous month to 2.26 mmt.
• Friday’s CFTC report saw funds as sellers of soybeans as of April 28. They sold 7,602 contracts, which reduced their net long position to 185,282 contracts, which is still near record high. They bought 281 contracts of soybean oil leaving them long 165,725 contracts and bought 333 contracts of soybean meal leaving them long 121,189 contracts.

WHEAT HIGHLIGHTS:

• Wheat futures closed mixed, with several HRW contracts finishing unchanged as improved moisture chances in the southwestern Plains offset frost concerns. In July contracts, Chicago gained 3-1/4 cents to $6.41, Kansas City was unchanged at $6.94-1/2, and Minneapolis fell 5 cents to $6.99.
• Weekly wheat export inspections were pegged at 16.0 mb, bringing total 25/26 inspections to 819 mb, up 12% from last year. Inspections are currently running above the USDA’s estimated pace; exports in 25/26 are projected at 900 mb, up 9% from the year prior.
• As of Friday’s Commitments of Traders report, managed funds purchased just over 30,000 wheat contracts for the week ending April 28 across all three classes. This brings their combined net long position to around 69,000 contracts, the largest since June 2022.
• India is reportedly easing wheat export restrictions for the first time in four years, allowing up to 5 mmt to be shipped. One vessel carrying 22,000 mt has already been loaded for the UAE, with the move driven by higher global prices and adequate domestic supplies.
• According to their Ministry of Agriculture, the Egyptian government has purchased over 1 mmt of wheat from domestic farmers so far this season. The buying began in mid-April and is expected to conclude in mid-August.
• The Australian government is worried about a mouse plague in the wheat belt of Western Australia. Mice have reportedly been infesting farms in key grain producing areas, which could cause crop damage. Previously, Australia had their worst plague of mice in 1993, where thousands of hectares of crops were destroyed.

DAIRY HIGHLIGHTS:

• Class III futures fell double-digits today as the second month June contract settled at $17.21, down 11 cents from Friday.
• Spot cheese fell just 0.3750 cents today to $1.62375/lb. Spot whey was down a quarter cent to $0.6950/lb.
• For Class IV futures, most contracts were down double-digits today. The exception was June futures, which gained 2 cents to finish at $21.22.
• Spot butter lost 4 cents to start the week, moving to $1.5550/lb, while powder was unchanged, still just beneath all-time highs.

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Author

John Heinberg