Tuesday May 21, 2024

• Wheat values are continuing to increase 
• Corn and soybeans are down with news of the better than expected planting progress in the US
  • Regardless of the wet spring US farmers are getting the crop in the ground in a timely fashion 
  • Both corn and soybean plantings beat the trade expectations with corn up to 70% on Sunday night and soybeans now sitting at 52% done 
  • Corn is sitting close to the 5 year average and soybeans are still sitting ahead of that average (see the chart from StoneX below)
• US winter wheat ratings saw a 1% decline and are now sitting at a rating of 49% good/excellent which is still better than previous years
• The dry weather in Russia still continues to be an issue and the size of the wheat crop is still in question
  • There is potential that the smaller wheat crop may lead to Putin reducing the exports out of Russia
  • The frost they received has caused an increase in Russian wheat export prices 
• Private exporters reported there was a sale of 113,050 mt of corn for 23/24 and 24/25 delivery to Mexico. There was also a sale of 110,00 mt of corn for delivery to Spain for the 23/24 marketing year
  • The sale to Spain is a good indicator that the US is competitive against Brazil 
• China imported a record amount of wheat in April, their wheat imports are up 4% from a year ago. China is expecting a good domestic harvest which will limit any additional wheat imports moving forward