May 28, 2015
Grain Marketing Specialist
Corn: up 1
Crop progress and good weather continue to drive the market. Additional rains are forecasted later this week but a drier pattern beyond. The July contract, yesterday, matched the harvest low on September 30th. Funds are short a record 177,000 contracts, selling another 11,000 on Wednesday. Ethanol margins are around $0.59 per gallon, this is up $0.04 from last week but below $1.05 last year. EIA report at 10:00 AM.
Soybeans: up 3
Strikes continuing at Argentina ports are helping the market and because of that, the US has sold over 100,000 tons of soybeans to Europe in the last three weeks. Argentina soybean crop estimated at 59.0 MMT compared to the USDA at 58.5. The number of farms hit by bird flu continues to rise with new cases reported yesterday in Iowa and Minnesota.
Wheat: MW up 2; KC up 1
Large stocks globally and domestically continue to weigh on the market as well as the US dollar. The market is not as concerned about the far south wetness, looking more at the beneficial weather and huge yields in the rest of the wheat region. Showers forecasted for dry Canada areas; crops in Russia and the Ukraine are looking favorable also. Japan bought just over 100k tonnes of milling wheat as planned this week, including 66k from the US and 34k from Canada, for June -July loading.