CORN
- Heavy rains are said to have hit the Argentina corn crop, leading to some potential damage concerns. Additionally, the Buenos Aires Grain Exchange lowered their estimate of that crop from 56.5 to 54 mmt.
- An estimated 34% of US corn acres are experiencing drought. For major producer Iowa, that area is said to be at 84% in drought, but rain over the next few days may bring some relief.
- In Brazil, an estimated 85% of the safrinha corn crop is planted, and some of the major production areas including Mato Grosso and Parana remain mostly warm and dry.
SOYBEANS
- The European Union is said to have imposed a 50% duty on all Russian oilseed imports.
- Brazilian soybean harvest is now around 70% complete – this is in line with the average. Mato Grosso in particular, is said to be 100% done.
- Brazil soybeans are said to be at a 55-cent discount to US FOB soybeans out of the Gulf. This may limit upside potential for futures.
- Palm oil is higher again due to good demand as well as production concerns, offering a boost to soybean oil and soybean futures this morning.
WHEAT
- More Russian attacks against Odesa occurred overnight, in which power plants were targeted. Concern that this could disrupt business at the ports is adding some premium to wheat.
- One of the major Russian wheat exporters has not received the appropriate export licenses due to the company failing to secure phytosanitary certificates. This has kept vessels in port and may also be adding some premium to the market.
- Parts of Kansas and Oklahoma are expected to get cold temperatures this Tuesday and Wednesday which could affect the HRW crop as it comes out of dormancy.
Author
Brandon Doherty