The most active corn contract for July delivery fell 12.75 cents, or 1.62 percent, to settle at 7.72 U.S. dollars per bushel. July wheat lost 15.75 cents, or 1.42 percent, to settle at 10.9275 dollars per bushel. July soybean plunged 36.75 cents, or 2.27 percent, to settle at 15.8525 dollars per bushel.
Stock market falls and improved planting weather are causing pressure on CBOT summer row crops. Chicago-based research company AgResource doubts that the decline will be long-lived. December corn and November soybeans are undervalued relative to known fundamentals amid record large U.S. export sales. Margins for U.S. ethanol, renewable diesel and soybean crushers are strong. AgResource stays bullish with world wheat to be the upside price leader into late May, holding December corn and November soybeans are nearing seasonal lows.
China has imported more soybeans than U.S. Department of Agriculture (USDA) forecast in the first half of the international crop year. China's 2021-2022 soybean import works out to 99 million metric tons.
World wheat futures are soaring on tightening supplies of the primary exporters. Black Sea wheat exports, namely from Ukraine and Russia, will be cut from 60 million metric tons to 32-35 million metric tons. This assumes that Russia exports 27-29 million metric tons of wheat and Ukraine 5-6 million metric tons.
U.S. export inspections for the week ending May 5 were 54.8 million bushels of corn, 18.5 million bushels of soybeans and 8.7 million bushels of wheat.
A 6-8 day period of warm and dry weather should allow for Midwest spring seeding to push strongly ahead this week. The jet stream holds to the north with showers and storms over the Northern Plains and the Northwest Midwest. Crops here will be late seeded. The Southern U.S. Plains will be dry with heat noted.
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