May 31, 2017
Kaitee Schaefers
Grain Marketing Specialist

Corn- up 3
The corn market was setback yesterday closing down 7 cents, mostly on the fact that weather over the long weekend was favorable for planting progress and conditions. Export inspections were out at 47 mbu this week, 30 mbu is what is needed weekly. Temps remain below average across most of the Midwest this week. The western corn belt and norther plains will be above average. The 10 day outlook looks to be wet from Kansas and Missouri to Southern Indian and Southern parts of Ohio. They could get up to another 4 inches. With that being said the first crop conditions rating on corn came out yesterday afternoon and several of these eastern states had condition ratings below what was expected. Overall trade estimated nationwide crop conditions to be somewhere between 65% and 72%. USDA came in at 65%, on the lower side of expectations. That with good inspections yesterday helped give us some strength in the overnight trade. On the nearby July contract some target levels to look at would be 3.74 this is the 100 day moving average and 3.79 which would be the old high that we have not been able to break through since early march.

Beans- up 1
On Tuesday the USDA did announce a 130k mt sale to an unknown destination. The market didn’t care as we closed down 13 cents at 9.12 on the July contract. Again, improving weather and the idea that we might possibly have at least another 500,000 to 1,000,000 acres going to beans in eastern areas that are behind on corn planting. On top of the 90 mil acres that the USDA has us projected to plant. Export inspections were good yesterday at 12.3 mb vs the 8 mb needed weekly to reach USDA projections for the year. Globally we are sitting on a large supply of soybeans. Brazil is just coming off of harvesting a record crop. There has been rumors of China switching purchases from the US to Brazil over this past week. The funds are short soybeans and bean oil.

Wheat- MPLS up 4 KC up 2
Mpls wheat traded down 7 cents for most of the day before closing at the high 5.68 on the July contract. This morning we have pushed higher sitting right at the 100% retracement level. Dryness in the Dakotas lending some bullish support to the market. Harvest reports out of TX, OK, and KS have not been spectacular by any means. We do still have a 1.159 bb carryout preventing things from getting to bullish.