CORN
- Corn is trading higher near midday after yesterday’s Crop Progress report showed a sharper than expected drop in ratings.
- The good to excellent rating fell by 3% to 53% which is the lowest reading since the 2012 drought year. Illinois ratings fell by 10% and Iowa fell by 5%.
- Ag Rural has reported that Brazil’s second crop corn is now nearing 88% harvested, while their first corn crop is nearing 13% planted.
- Weather forecasts for the next 6 to 10 days are trending cooler for the entire Corn Belt with above average precipitation expected for the western Corn Belt.
SOYBEANS
- November soybeans gapped higher yesterday evening but have moved slightly lower. Soybeans are still trading higher along with soybean meal, while soybean oil is lower.
- Yesterday’s crop ratings showed the good to excellent rating for soybeans falling sharply by 5% to 53%. The poor to very poor rating also increased by 3% to 17%. These are the worst ratings since 2012.
- Soybean export demand has remained active with another sale yesterday announced of 9.2 mb to unknown destinations. This brings new crop total sales to 526 mb.
- Oil World sees Palm oil prices rising by more than 10% in the coming months amid poor production growth. The decline of palm oil production should raise dependence on soybean, sunseed, and rapeseed.
WHEAT
- Wheat is trading higher today as global wheat production in countries apart from Russia is seen falling, and as Russia attacked more port cities in Ukraine.
- Overnight, Russia sent drones to both the Odesa and Danube River ports delivering three-hour drone strikes which damaged several agricultural and port facilities.
- The Australian wheat crop has suffered heat and drought and is now being estimated at just 25.4 mmt which would be down 36% from last year.
- SovEcon has raised their estimates for Russian 23/24 wheat exports to 48.6 mmt citing increases in the production estimate.