CORN

• Corn is lower at midday trade as weather across the U.S. adds some volatility to the market. May wheat is down ¼ cent at 4.55-¼.
• The latest drought monitor shows no signs of drought across the central and eastern Corn Belt, while dryness persists in the western Plains and the Southeast. Corn affected by drought increased slightly this week to 27%, up from 26% at the same time last year.
• Argentina’s harvest has progressed to 26.5% completion, while France’s planting pace has reached 56%, indicating steady fieldwork in both regions.
• The International Grains Council lowered its estimate of global corn production by 3 million tons to 1.3 billion tons, likely the first of several potential downward revisions as higher fuel and fertilizer costs continue to pressure producer margins worldwide.

SOYBEANS

• Soybeans are trading lower at midday as ongoing global conflicts weigh on the market. Soybeans and soybean meal are trading lower, while soybean oil is showing slight gains. May soybeans are down 1-¼ cents at 11.58-½.
• Argentina’s harvest has reached 10.2% completion, while Brazil is approaching the final stages of its harvest, signaling advancing progress across South America.
• Soybean area under drought conditions rose 1% this week to 30%, compared to 21% a year ago. However, the three “I” states continue to show little to no drought stress. Planting progress is expected to slow over the next week as widespread rainfall moves across much of the Midwest and Plains.
• Uncertainty remains in the market over whether the unresolved Iran situation could lead to another postponement of the Beijing summit, raising concerns about the timing of additional soybean purchases from China.

WHEAT

• Wheat prices are pulling back at midday as weather concerns continue to ease, supported by ongoing rainfall across parts of the U.S. May Chicago wheat is down 5-¼ cents at 6.05-½, while May Kansas City wheat is 9-¼ cents lower at 6.57-¾.
• Lower global production remains a factor in the market, as reduced planted acreage is now expected in Ukraine, Argentina, Australia, France, and Zimbabwe.
• Overnight news indicated that President Trump is willing to take a wait-and-see approach with Iran while maintaining the blockade around the Strait of Hormuz, signaling that fuel and fertilizer pressures are unlikely to ease in the near term and continuing to provide underlying support to the market.
• European traders noted that U.S. buyers have recently purchased Polish milling wheat amid elevated U.S. prices.

Author

Lauren VandenLangenberg