Morning Market Insight

May 3, 2018
Abbey Kittelson
Grain Marketing Specialist

 


CORN – As of 7:45 – unchanged
In a small pullback from the recent corn rally, contracts yesterday settled unchanged to down on the day, and holding steady overnight. Weather forecasts are calling for a wetter Argentina. Also calling for a few showers in southern Brazil (very dry there), although confidence is very low in that system pulling through. The second crop corn is very stressed there, and production worries loom over the market. US exports remain strong, with this week’s number at 40.2. That was above both expectations and last week’s sales of 27.4.

SOYBEANS – As of 7:45 – steady
Soybeans traded lower, following meal and stories of hindered US trade with China. Yesterday’s currency trade did not help the soybean market, when both the Argentinian Peso and the Brazilian Real made new lows and the US Dollar made a new high for the year. Export sales were pegged at 15.3 mbu, in line with expectations and slightly above last week’s number at 13.6. Overnight, the soybean market is mixed, but holding steady.

WHEAT – As of 7:45 – KC down 4, MNPLS down 5
The crop tour in the southern plains continues to find a lot of the same: short wheat, drought stress, freeze damage, and behind schedule maturity. In northern Kansas, yields were estimated at 38.2 vs. 43 bushels per acre last year. Australian planting conditions remain dry. They have only received about 27% of average rainfall in the last two months in western regions, where 40% of the crop is grown. Warm and dry conditions seem to be the story in a few different wheat producing areas of the world: the Black Sea, Russia, and Ukraine. Export sales were in line with expectations at 8.6 mbu.
 

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