Corn Lower on Chinese Cancellations

• July CBOT corn futures shed 30-1/4 cents this week to close at 585.
• December CBOT corn futures shed 20-1/4 cents this week to close at 527-3/4.
• The USDA confirmed two cancellations this week of US corn that was destined for China in the 2022/23 marketing year. The total of the two cancellations comes to 22 million bushels, export sales are currently running 33% behind last year’s pace.
• The EPA announced Friday an emergency fuel waiver making E15 available this summer, the announcement was touted by a bipartisan group of senators just ahead of peak summertime driving.
• The 6-10 day forecast models show normal temperatures and below normal precipitation for the Midwest while the 8-14 day models show above normal temperatures for the Dakotas and Nebraska along with below normal precipitation. This suggests active planting ahead.
• July corn futures lifted off of early in the trading session lows on Friday managing to close above support of the July 22, 2022 low near the 574 level.

Soybeans Hold $14 Level

• July CBOT soybean futures shed 29-3/4 cents this week to close at 1419-1/4.
• November CBOT soybean futures shed 21-3/4 cents this week to close at 1263-1/2.
• All locks and dams on the Mississippi above Lock 17 in New Boston, Illinois are currently closed for what is expected to be three weeks due to flooding. Grain exports and fertilizer deliveries in the Northern Midwest will be affected.
• Despite the poor performance to start the week, front month soybean futures showed resilience to end the week finding buyers near the 1400 level and managing to surge 15-1/2 cents higher on Friday.
• After trading this week to their lowest level since December of 2022, front month soybean meal futures rallied on Friday adding over 1.1%.
• Soft Chinese demand for the record Brazilian soybean crop currently being offered at a steep discount to US soybeans leaves the market concerned about global demand for all grains moving forward.

KC Futures Lead Lower on Rains in the Plains

• July CBOT wheat futures shed 39-1/4 cents this week to close at 633-3/4.
• July KCBOT wheat futures shed 49-1/4 cents this week to close at 776-1/4.
• July MGEX spring wheat futures shed 42 cents this week to close at 803-3/4.
• Beneficial rains fell across HRW wheat country this week, as much as three to five inches of rain were reported in portions of Southwest Kansas and Oklahoma.
• According to a Stats Canada survey released this week Canadian farmers are expected to plant the largest wheat area since 2001, up 6% from last year. Uncertainty looms around these findings however, as the survey was conducted from mid-December to mid-January.
• The Black Sea Grain Initiative is showing plenty of signals that it may not be renewed, the current agreement is due to expire May 18^th.

Class III and IV Futures in the Red

• Weekly losses were found in all 2023 Class III and Class IV futures contracts; second month Class III futures rebounded off of lows but still settled 49c lower on the week.
• Active selling in the spot trades continued this week for whey and cheese, which each seeing 30+ loads traded, despite the volume, both lost 1c per pound.
• Active cow culling may help alleviate the spring flush with a 10.1% growth, year-over-year, for the week ending 4/15.
• The USDA revised the 2021 and 2022 total cheese production up by over 173.5 million pounds.