CORN

• About 59% of the US corn crop is still said to be experiencing drought conditions.
• Some weather premium might be taken out of the marketplace, with the forecast looking for better conditions next week in the Midwest.
• September corn on Brazil’s Bovespa exchange is trading near the equivalent of $5.11 per bushel, which is close to the lowest level in two years.
• Argentina recently announced a new corn / peso exchange rate incentive to increase farmer selling. This could pressure futures as more supply enters the export market.

SOYBEANS

• About 53% of the US soybean crop is still said to be experiencing drought conditions.
• Private exporters reported 325,000 mt of soybeans for delivery to China, 171,460 mt for delivery to Mexico, and 413,000 mt for delivery to unknown (all during the 23/24 marketing year).
• April biofuel use by soybean oil was a record 927 million pounds (up 10% from last year).
• Malaysian palm oil is down for the fourth session in a row, however, soybean oil is trading higher at midday.

WHEAT

• About 43% of the US spring wheat crop, and 47% of the winter wheat crop are still said to be experiencing drought conditions.
• Due to dryness, the Canadian wheat crop could be closer to 30 mmt (vs the USDA at 35 mmt).
• The final yield of the spring wheat tour in North Dakota came out at 47.4 bpa. The average is 40, last year was 49.1, and the USDA is currently using a yield of 47.
• Paris milling wheat futures are headed for a fourth lower close in a row, and a gap remains below the market that may eventually be filled. French soft wheat harvest is reported to be 83% complete.

Author

Brandon Doherty