The most active corn contract for July delivery rose 3.25 cents, or 0.41 percent, to settle at 7.975 U.S. dollars per bushel. July wheat soared 30 cents, or 2.79 percent, to settle at 11.065 dollars per bushel. July soybean gained 6.5 cents, or 0.4 percent, to settle at 16.47 dollars per bushel.
Worry on world wheat and corn supplies is real which will underpin any break. Ongoing dryness is elevating the worry over a sub 105-million-metric-ton Brazilian total corn crop while the wheat market is pricing sharp falls in Indian/Pakistani production. India's wheat ban would leave the European Union and the United States as the only reliable world wheat supplies into October.
The hunt for old crop U.S. corn and soybean is on while importers and end users hope for a bearish May World Agricultural Supply and Demand Estimate (WASDE) report to make new forward purchases. Chicago-based research company AgResource stays bullish, holding any 2-3 day corrections offer new purchase opportunities.
U.S. export sales for the week ending April 28 were 4.4 million bushels of old and 1.6 million bushels of new crop wheat, 30.8 million bushels of old and 29 million bushels of new crop corn, and 27 million bushels of old crop and 15 million bushels of new crop soybeans. U.S. unshipped and sold soybeans are record large over 800 million bushels, suggesting massive demand for U.S. soybeans from late summer into January of 2023. The United States is facing record large corn and soybean exports from July onward.
U.S. crushers will keep bidding cash soybeans higher and higher to maintain plant operations. The fight between the domestic crushers and U.S. exporters will worsen with final U.S. 2021-2022 soybean end stocks pegged at just 150-170 million bushels.
A final potent storm system will be pulling across the East Central U.S. in the next 48 hours before a lengthy period of warm and dry weather returns. This means farmers should start to seed spring crops in earnest on May 11 and 12. The jet stream will shift north with showers and storms over the North Plains and the Northwest Midwest into May 15. Crops will be late seeded.
Latest comments