CORN
- Corn is trading lower again this morning and is now at its lowest levels since last December as faster than expected planting progress and good weather so far continue to pressure prices.
- Estimates for the weekly EIA report see ethanol production higher than last week at 1.031m barrels per day and the stockpile average estimate at 25.067m bbl compared to 25.191m a week ago.
- The last time corn was trading at such low prices, the 2025 stocks to use ratio was at 12.9% and is now at 9.3% with the possibility that it could tighten further given the strong exports recently.
SOYBEANS
- Soybeans are mixed to start the day in bull spreading action in which the front months as trading slightly higher compared to losses in the deferred months. Soybean meal is higher while soybean oil is lower, following crude.
- US soybean exports may decline by 20% without a US-China trade deal according to AgResource. While the tariffs have been drastically reduced, they are still higher than they were before any were implemented. Brazil’s President Lula has said he is unafraid of US retaliation over China ties.
- With Monday’s new crop soybean balance sheet projecting ending stocks at just 295 mb, there is little room for yield-reducing weather this season. Crucial weather for yield determination will arrive during the flowering and pod-fill stages, primarily in August and early September.
WHEAT
- Wheat futures extended losses Wednesday morning following fresh contract lows set on Tuesday.
- Persistent fund selling continues to pressure the market which has been driven by recent rainfall across key winter wheat regions and rapid spring wheat planting progress in the Northern Plains.
- A weaker US dollar Wednesday morning may offer limited support, as wheat prices hover near multi-year lows.
Author
Keegan Madigan