TFM Morning Update 05-31-2023

CORN

Corn futures are lower again this morning following yesterday’s selloff as wetter weather is forecast for the end of June.
Planting progress showed that 92% of the corn crop is planted compared to 81% last week with 72% emerged and a rating of 69% good to excellent compared to 73% a year ago.
The best chances of rain in the seven-day forecast are in the western Plains with some falling in the central and Eastern Corn Belt, with better rains expected the second week of June.
Concerns that the US debt deal could fall through Congress is weighing on markets with most commodities falling.

Soybeans are also trading lower after their sharp selloff yesterday with soybean oil leading the way lower yesterday and today.
Planting progress showed that 83% of the soybean crop has been planted compared to 66% last week, with emergence at 56% compared to 36% a year ago. Soybeans have not received a rating yet.
Soybean inspections yesterday were 8.8 mb for 22/23 putting total inspections down 2% from the previous year. The USDA is estimating soybean exports at 2.015 bb, down 7% from the previous year.
China’s economic growth may be lagging, and July soybeans on the Dalian exchange closed down by 1.6% putting prices at their lowest levels in the past two years.

Wheat is trading lower along with the rest of the grain complex this morning due to more favorable weather in the extended forecast and yesterday’s crop progress report.
The winter wheat good to excellent ratings jumped to 34% vs 31% last week thanks to the recent rains. Spring wheat is 85% planted vs 64% last week, and emergence is at 57% vs 32% last week.
Wheat inspections totaled 14.0 mb for the week ending Thursday, May 25, putting total inspections at 719 mb and down 2% from the previous year.
Russian farmers have begun to suspend wheat deliveries to exporters while waiting for higher prices after the export duty will be reduced on June 7. This is causing wheat to pile up in Russia.

Amanda Brill