Friday June 7, 2024

• We are lower to end off the week 
• There was a flash sale of 152K tonnes of corn to unknown for 23/24 delivery
  • There is heavy speculation that this trade to unknown was China business, this gives the US some export hopes going forward
• The USDA export report put corn 1% ahead and soybeans 3% behind the paced needed to meet the USDA expectations. Corn sales were strong last week with sales up 46% from the previous week (See corn export chart below). There were lots of net cancellations on wheat sales, a bulk of said cancellations were rolled to new crop. These cancellations leave wheat 35mb short of the expected total in the May supply and demand report
• We saw a bit of a rally in corn yesterday, corn seemed to be dragged up by soybeans. Corn had been down for 10 consecutive days
• Argentine corn harvest is estimated at 35% complete this week which is ahead of last years pace but in line with the 3 year average. Soybean harvest is 92% complete this is a little behind the average. Wheat planting is at 26% complete
• Brazilian corn and soybean exports may be disrupted as a result of a surprise change in policy
  • The Brazilian Finance Ministry announced it will be tightening the use of government tax credits. Apparently the measure will make Brazilian soybean producers less competitive and reduce bean prices
• US weekly drought monitor released the areas experiencing drought
  • Corn 3%
  • Soybeans 2%
  • Winter Wheat 21%
  • Spring Wheat 3%