TFM Midday Update 5-30-2023

CORN

  • Yesterday the American weather model put more rains into the Midwest (especially the 8-14 day timeframe). This may be weighing on grain futures this morning.
  • Reportedly, an agreement has been reached to raise the US debt ceiling, but now that deal must be passed by congress.
  • July corn on Brazil’s Bovespa Exchange is around the equivalent of $4.94 per bushel.
  • According to AgRural, their projection of Brazil’s total corn production has been raised to 127.4 mmt (vs 125.1 mmt previously).

SOYBEANS

  • Based on July futures, board crush is the lowest since June of 2022.
  • Prop 12 in California will start July 1. These new rules affect the treatment / living conditions of hogs but could also affect demand for soybean meal.
  • China’s economy is continuing to slow down, increasing concerns that they may not be able to import the same quantity of commodities as in years past.
  • July soybeans on China’s Dalian exchange were down 1.8% Tuesday, around the equivalent of $14.80 per bushel.

WHEAT

  • The wheat market may be concerned about lower demand for US wheat due to global financial issues. Limited cash availability in parts of north Africa and the middle east could mean reduced demand there.
  • It remains dry in northern Europe and parts of the Russian spring wheat areas.
  • In opposition to the El Nino pattern, Australia is starting to get some rains. This may alleviate some concern about drought for their upcoming wheat crop, though it is still early to make that determination.
  • Floods this weekend in the Texas Panhandle area certainly did not help the crop there. Their forecast this week also calls for moderate to heavy rain, causing more concern.
  • Despite Russia’s attack over the weekend on the Odesa port in Ukraine (which is protected by the agreement), wheat is sharply lower at midday today.

Author

Brandon Doherty

Sign up to get daily TFM Market Updates straight to your email!

back to TFM Market Updates