Corn is trading slightly higher this morning with the European model showing little to no rainfall for the majority of the Corn Belt over the next 10 days.
Yesterday’s export inspections were solid at 52.1 mb for the previous week which put total inspections at 1,078 mb, down 33% from the previous year.
Taiwan’s MFIG purchasing group has issued an international tender for 65,000 tonnes of animal feed corn which can be sourced from the US, Brazil, Argentina, or South Africa.
Crop progress was released and shows corn 81% planted vs 65% last week and 69% a year ago. Emergence is at 52% compared to 30% last week.
Soybeans, soybean meal and oil are all trading lower this morning on the heels of poor export inspections that were only 5 mb. They need to be an average of 15 mb each week to meet the USDA’s expectations.
Planting progress is moving along for soybeans as well and is now at 66% planted vs 49% last week and 47% a year ago. Emergence is at 36% vs 20% last week.
Yesterday’s rally was encouraging, but it was not based off of any new fundamental news and was likely a result of short covering.
Unless there are any weather issues, traders are anticipating that US yield outlooks improve, increasing US production. The combination of a record soy crop from both the US and Brazil is concerning for prices.
All three wheat products are trading slightly higher as US conditions remain poor and issues re-emerge in the Black Sea region.
Winter wheat is rated 31% good to excellent vs 29% last week. Spring wheat is 64% planted vs 40% last week, and emergence is at 32% vs 13% last week.
The UN is concerned by the lack of ships going to one port, the largest in Ukraine, in the Black Sea region. They have not received any ships since May 2, and the UN is not sure who is to blame.
China is reportedly using less soy and corn in their hog feed and instead opting to use wheat in an effort to curb reliance on imports, a theme that has been very apparent lately.
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