Friday June 21, 2024

• Prices were making a recovery early this morning after yesterdays drop. However on the 9:30 open things took a turn back to red
• The market currently has very little concern for the US bean and corn crop however some heavy unwanted rains are moving through the northern corn belt. There is 4-5″ of rain forecasted for southern MN and Northern IA through tomorrow. The already replanted crop is sitting under water
• India has been facing some high temperatures with some areas reaching 50 degrees Celsius (see image below). There is lots of talk on X that the heat will worsen food security. In April Hindu shared that wheat yields were down 6.3% from 2023s record harvest
  • India had already stopped their wheat exports in 2022 so this shouldn’t impact the world market
  • If India doesn’t see any rain the rice crop might be affected 
  • Overall, this story doesn’t seem like it will have much affect on the wheat markets
• Russia and North Korea signed a mutual defense treaty. This partnership could be risky for China as they rely heavily on trade with both nations
• The Buenos Aires Grain Exchange raised their planted acres estimate for the 2024 crop. Argentina’s production is anticipated to exceed last years crop by 1.6k mt. Argentina is the worlds 7th largest wheat exporter 
•  Brazil continues to see dry weather in the central and northern safrinha corn crop which is helping with dry down and harvest. They’re receiving some rain in the south which is helping the wheat acres
• Southern Russia is seeing some showers which is helping decrease dryness concerns, about 15% of the crop areas are still experiencing dryness