The most active corn contract for July delivery rose 28.25 cents, or 3.62 percent, to settle at 8.095 U.S. dollars per bushel. July wheat soared 70 cents, or 5.94 percent, to settle at 12.475 dollars per bushel. July soybean gained 10 cents, or 0.61 percent, to settle at 16.565 dollars per bushel.
CBOT agricultural futures sustained bullish momentum following India's banning of wheat exports and as weather will continue to threaten winter wheat yields across the U.S. Southern Plains and in Western Europe. There will be correction in wheat, but increasingly Chicago-based research company AgResource suggests solving current global wheat supply issues will be impossible without outright demand destruction.
Debate is ongoing with respect to the monthly pace of Russian wheat exports beginning in mid-summer, when the current export quota is lifted.
Wheat markets are more concerned with the abrupt end to India's wheat export program in the context of falling North American and EU production potential. The fundamental outlook stays bullish, and it is just tough to be bearish of corn and soybean even amid normal weather.
U.S. weekly export inspections were below expectations in corn, but at or above expectations in soybean and wheat. Corn inspections through the week ending May 12 totaled 41 million bushels, as against 58 million bushels in the previous week; wheat inspections were 13 million bushels, as against 10 million bushels; and soybean a sizable 29 million bushels, as against 19 million bushels.
For respective crop years to date, the United States has shipped 1,539 million bushels of corn, down 17 percent year on year; 1,782 million bushels of soybeans, down 14 percent; and 712 million bushels of wheat, down 20 percent. China will remain active in extending soybean coverage on breaks.
The National Oilseed Processors Association (NOPA) member crush in April totaled 169.8 million bushels, as against trade estimates of 171-172 million bushels. April soyoil stocks were 1.81 billion pounds, as against 1.7 billion pounds a year ago. There is no shortage of oil.
It will be drier in the principal Midwest next week but wetter in North Dakota and Minnesota. Additional excessive rainfall will be largely isolated to the Northern Plains and Northwest Midwest. Key will be planting progress last week and through this Tuesday and Wednesday, as planting will be challenged again beginning Thursday. Otherwise, extreme heat and a lack of precipitation this week will allow for additional drought expansion across the Southern and Western Plains.
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