The most active corn contract for July delivery fell 10.5 cents, or 1.31 percent, to settle at 7.93 U.S. dollars per bushel. July wheat lost 10 cents, or 0.95 percent, to settle at 10.455 dollars per bushel. July soybean shed 14.75 cents, or 0.9 percent, to settle at 16.305 dollars per bushel.
The U.S. Federal Reserve has not raised interest rates by more than 0.5 percent in a single meeting since 1994. The market has been taking risk off ahead of the announcement on Wednesday. Following the decision, fund managers should get back to adding risk in portfolios, according to market watchers.
Chicago-based research company AgResource sees corn break as consolidative at a historically high price. U.S. spring planting progress is going to be delayed and time is running short. Late planted corn/soybean crops do not produce record yields.
Corn ethanol and soybean crush margins are exceptionally strong in U.S. Midwest, with demand for the finished products holding at elevated levels. The structure of the CBOT bull market has not changed with record profit margins for domestic end users.
The 2022 Indian wheat crop is projected near or below 100 million metric tons due to the record heat that occurred from March into early May. And Pakistan falls into this same adverse weather category and may have to import record wheat tonnages in 2022-2023. World wheat supplies in the coming year are tightening.
An active weather pattern holds across the Central U.S. for the next 10-12 days with storm systems passing through the area every 2-3 days. The frequency of the rain further slows planting progress, even in the East Midwest. The rain will maintain a slow planting pace and concern for late seeding and yield drag will be rising. Midwest and Northern Plains planting delays will be extended.
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