May 24, 2017
Grain Marketing Specialist
Corn: 1-2 Higher
Corn market lost what we have gained over the last few trading session yesterday as planting progress dominated news, as we are holding on to the 5-year average. July contract was 5 ½ lower and Dec was 5 lower. There was a small tick positive on the overnight session as weather continues to be the big player. Ethanol prod report out today-expectations are for an uptick in production, implying more bushels ground. The corn/ bean ratio has dropped since beans have sold off the last few months. It is currently on the lower end of the range. It may low enough to incent growers to be patient and get corn in rather than making the switch to beans.
Soybeans: 2-3 Higher
Beans were hit the hardest yesterday as we saw July down 8 ¼ and Nov down 7 ¾. SN saw its 2nd lowest close since April 2016. SX down to a price level last seen last harvest. We are seeing a good recovery this morning as the July contract is up 3 and Nov up 2 ¾. Weather continues to be the factor but still are seeing wet weather eastern corn belt, and areas out there are still struggling to get corn in. Do they switch? Speaking of weather, we are looking at small showers in areas, not big but enough to slow field work. The concern to is heat as we are seeing below average temps.
Wheat: 1-3 Lower
Wheat followed the row crops down yesterday as both Minny and KC were down 5 on the nearby contacts. We did see wheat follow corn and beans back although fundamentally the market is bearish. Canada remains behind the normal planting pace, but has made some progress this week. Southern HRW harvest has begun custom combiners report an imperfect crop in many areas, lower pro where tested and a few reports of lighter test weights.