Market News

Soybeans, corn, wheat sharply higher to start the week

Soybeans finished the day sharply higher, July contracts were 36 cents higher at $12.13.  Details emerged on Sunday from the trade deal between the U.S. and China.  The soybean market managed to recover most of last week’s losses late in the week.  Soybean export inspections were down from the prior week, but continue to run well above year-ago levels.  The market continues to monitor the weather forecast for the rest of the planting season and was looking ahead to update crop numbers from the USDA.   The NOPA member soybean crush for April was up on the year, but below expectations.

Corn was sharply higher, July contracts closed 21 and ¼ cents higher at $4.77.  The trade was digesting the details of the US-China trade deal.  China has agreed to purchase $17 billion in US ag goods over the next three years.  The market has also been keeping an eye on planting weather in the US and crop development weather in Brazil.  CONAB did lower their second crop outlook recently, citing weather, and total production is expected to be slightly below a year ago, with the next guess out June 11^th. Harvest weather in Argentina looks generally favorable. 

Wheat started the week sharply higher following last week’s three consecutive days of losses.  July wheat in Chicago was up 28 and ¾ cents to $6.64 and ½. The market was likely under influence from the sharply higher soybean market and the trade’s optimism.  But the realty remains that US prices are at a competitive disadvantage on the global market.   A recent HRW crop tour did show a better-than-expected average yield, but production in that state could still be a multi-year low. The trade is also watching planting in the northern U.S. Plains, Argentina, Australia, and Canada, along with development conditions in Europe, Russia, and Ukraine.