Morning Market Insight
Grain Marketing Specialist
Corn as of 7:45: Up 2
Corn closed down 5 ½ yesterday to 3.66 July 17 futures. It was all about the Brazilian Real today with the potential impeachment of President Temer sending the Real sharply lower pressuring corn and soybeans lower. Most U.S. corn areas are cooler-than-normal forecast May 22-26. December 2017 corn futures on Thursday closed at $3.84, the lowest settlement price for the contract since April 24. One year ago, December 2016 corn futures settled at $3.97 ¼.
Beans as of 7:45: Up 5
Beans closed down 31 cents to 9.44 ¾ July 17 futures. Brazilian President Temer got caught on tape discussing bribes to former Speaker of the House, Eduardo Cunha, who was jailed for his role in the Petrobas corruption scandal. The Brazilian Real plummeted 8%, the largest one day move since the US 2008 financial crisis. A sharp decline in Brazil’s currency results in a higher domestic soybean price. Brazilian farmers dumped between 500k metric tons to 2 million metric tons yesterday.
Wheat as of 7:45: MW- Up 2 KW- Up 5
Minneapolis wheat closed up 3 ¾ to 5.44 July 17 futures. Kansas City closed down a ½ cent to 4.26 July futures. Western Australia has had several weeks of dry weather and its starting to take a toll on wheat crop. Northern Texas pro levels coming in very low compared to normal. 5-year average for U.S. spring wheat emergence increases around 15% from May 14-21 to 59%