The most active corn contract for July delivery fell 4 cents, or 0.52 percent, to settle at 7.6925 U.S. dollars per bushel. July wheat rose 0.25 cents, or 0.02 percent, to settle at 10.71 dollars per bushel. July soybean shed 38 cents, or 2.18 percent, to settle at 17.075 dollars per bushel.
CBOT futures were mixed following the acute weakness in world financial markets due to rising May inflation with rumors that the Federal Reserve will raise U.S. interest rates by 0.75 percent on Wednesday. Chicago-based research company AgResource expects that U.S. economy will slow by late year, but this should not have any lasting impact on U.S. grain or food consumption. CBOT values are down in sympathy. In longer term stuff will outperform stocks.
CBOT will add weather premium for the risk of hot/dry weather extending into July. AgResource stays bullish on new world wheat import demand from Morocco and hot/dry weather. The world cannot withstand any yield loss.
The U.S. Department of Agriculture reported Monday that for the week ending June 9, the United States exported 47.2 million bushels of corn, 22.2 million bushels of soybeans and 14.3 million bushels of wheat. For respective crop years to date, the United States shipped out 1,769 million bushels of corn, down 17 percent year on year; 1,854 million bushels of soybeans, down 11 percent; and 22.6 million bushels of wheat, down 12 percent. This was the first full week of U.S. wheat export that was reported for 2022-2023.
The coming heat/dryness for European grain crops could not have come at a worse time with winter wheat/barley in the reproduction. The German wheat harvest will not start for another 4-5 weeks, and recent heat/dryness has likely cut EU wheat production by at least 5-6 million metric tons. AgResource sees the EU wheat harvest at 130-131 million metric tons.
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