Corn is trading slightly higher again this morning after yesterday’s weather driven rally. Yesterday’s crop progress showed corn ratings slipping more than expected.
Crop progress showed the corn crop at 93% emerged which was up from 85% last week and up from the average, but the good to excellent rating fell more than expected to 61% from 64% last week due to dry conditions.
While most of the Corn Belt is dry, the 5-day forecast shows beneficial rainfall totals in the area with a focus on Minnesota, Iowa, and Missouri. The rains are expected around Thursday and Friday.
Corn prices in Brazil remain significantly cheaper than in the US, cutting into export business. Corn in Brazil is trading at the equivalent of $4.61 a bushel.
Soybeans are trading higher this morning after yesterday’s crop progress report. Soybean meal is higher as well as soybean oil which is getting support from palm oil which is up 2.5%.
Crop progress showed soybeans 86% emerged which was up from 74% last week, but the good to excellent rating fell to 59% from 62% a week ago, below trade expectations.
The Environmental Protection Agency has a June 14 deadline for announcing final renewable volume obligations that will impact the profitability of renewable diesel.
Crop ratings for both corn and soybeans saw the biggest declines in eastern states, so the benefit of Sunday’s rains likely weren’t included in yesterday’s ratings.
Wheat is trading lower this morning as harvest begins, and crop ratings improved from the previous week after recent rains.
Winter wheat is now rated 38% good to excellent which is up from 36% a week ago, 89% of the crop is headed and 8% is harvested which compares with 4% a week ago.
Spring wheat is 90% emerged which compares with 76% a week ago, but good to excellent ratings fell to 60% from 64% a week ago.
The high plans drought is so bad that Kansas is reportedly importing wheat from Europe in a rare move.
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