CORN

• Corn is trading lower as better rain is forecast in the Southern Plains over the next 7 days and temperatures in the Corn Belt are expected to warm up.
• US corn export demand is still very sluggish with export commitments down 33% from a year ago.
• Conditions for Brazil’s second crop corn have been beneficial, and they are now offering corn at a sharp discount to US prices.
• Russia is threatening to end the Black Sea grain deal if the G7 decides to ban Russian exports.

SOYBEANS

• Soybeans are trading higher with some help from soybean meal while soybean oil is lower despite higher crude oil.
• The US has purchased Brazilian soybeans after their prices dropped significantly, but this should not come as a shock considering that this happens nearly every year.
• The CFTC’s Commitment of traders showed funds as net buyers the previous week, increasing their net long position to 135,000 contracts.
• There is talk that Ukraine will plant more oilseeds, which is offering resistance to global vegetable oil markets.

WHEAT

• Wheat futures are mixed to lower as weather forecasts vary with some rain in the Texas panhandle, but Kansas is still painfully dry and spring wheat areas received more snow.
• Last week’s crop progress for hard red winter wheat was only rated 27% good-to-excellent and those numbers are unlikely to improve with the recent weather conditions.
• Russia is threatening to end Ukrainian grain shipments through the Black Sea which could be supportive for US prices.
• Friday’s CFTC report showed funds holding a net short position of 105,000 contracts of Chicago wheat.

Author

Amanda Brill