CORN

• Corn futures are trading higher this morning as the market continues to find support following recent losses. May corn is up 3-1/4 cents at $4.46-1/2, while December corn is 3-1/4 cents higher at $4.73-1/2.
• Ongoing constraints through key Gulf shipping routes have tightened global supplies of nitrogen-based fertilizers such as ammonia and urea, pushing input costs higher ahead of the U.S. planting season.
• This is raising concerns that higher production costs could influence planting decisions, potentially shifting acreage away from corn and toward less fertilizer-intensive crops like soybeans.

SOYBEANS

• Soybean futures are showing strength this morning, with gains across the board. May soybeans are up 6-1/4 cents at $11.64-1/4, while November soybeans are 5 cents higher at $11.49.
• Soybean planting is off to a record-fast start, with 6% completed nationwide compared to just 2% at this time last year and the five-year average. Progress has been led by southern states such as Louisiana, Arkansas, Mississippi, and Tennessee, which are already 30–39% planted.
• Traders had been hopeful that China would step in with additional old-crop soybean purchases, but rising geopolitical tensions have clouded that outlook. China remains heavily reliant on crude oil imports, particularly from the Middle East and Iran, leaving it vulnerable to disruptions tied to the conflict. As a result, energy security concerns are taking priority, adding uncertainty to global trade flows and potentially limiting China’s willingness or ability to increase U.S. soybean imports in the near term.

WHEAT

• The wheat complex is trading lower this morning as the market gives back some of yesterday’s gains. May Chicago wheat is down 5 cents at $5.87, Kansas City wheat is 5-1/4 cents lower at $6.17, and Minneapolis spring wheat is off 1/4 cent at $6.37-3/4.
• USDA reported that U.S. winter wheat conditions declined 1 point to 34% good-to-excellent as of April 12. Meanwhile, spring wheat planting reached 6%, in line with last year and slightly below the five-year average.
• Top wheat exporter Russia reported that 97% of its winter crop is in good-to-satisfactory condition, signaling strong production potential. In addition, the government increased its grain export quota by 5 million metric tons, further reinforcing the outlook for ample global wheat supplies.

Author

Matthew Lucas