TFM Morning Update 04-23-2024

CORN

Corn is trading slightly higher this morning after two consecutively higher closes over the past two days. July corn gained 13-1/2 cents over those two days as sharply higher wheat supported the grain complex and led to short covering by the funds.
Yesterday afternoon, the USDA released its planting progress report. 12% of the crop is reportedly planted which is above the 5-year average of 10%. 3% of the corn crop is emerged which is also above last year and the 5-year average.
Brazil has made its first shipment of sugarcane ethanol to the US to be converted into green jet fuel. It was sold by Raizen and shipped to Georgia in an effort to use the grain for sustainable aviation.

Soybeans are trading slightly higher this morning after two consecutively higher closes which saw July futures rally by a total of 27-1/2 cents over Friday and Monday. Prices failed this morning at the 50-day moving average which could act as resistance.
According to the USDA, 8% of the soybean crop has been planted which compares to 8% a year ago but is much higher than the 5-year average of 4%. Recent rains have significantly reduced the size of drought areas across the country.
Yesterday’s export inspections for soybeans were encouraging totaling 16.0 mb for last week which was above the average needed to meet the USDA estimate for the third week, but total inspections are still 18.2% below last year.

All three wheat classes are trading higher this morning, and wheat has been the leader of the grain market by a large margin. July Chicago wheat futures have gained just 34 cents in the past two days and briefly broke above the 100-day moving average this morning. This rally is likely caused by short covering.
Crop progress and conditions were released for wheat yesterday, and 50% of the winter wheat crop is now rated good to excellent which is down 5% from the previous week but higher than last year’s 26%.
15% of the spring wheat crop has now been planted which is up 11% from last week and compares to 10% for the 5-year average. 2% of the spring wheat crop is emerged, and the winter wheat crop is now 17% headed, up 6% from last week.

Amanda Brill