Content ID


3 Big Things Today, June 6, 2022

Grain markets sharply higher this morning; soybean sales hit marketing-year low

1. Grain markets are sharply higher this morning

With news of wetter weather ahead and the bombing of a major grain export elevator in Ukraine, grain markets are sharply higher this morning. In the U.S., Globex grain markets has corn futures 14 cents higher; soybean futures are up 19 cents, and wheat futures are trading 42 to 50 cents higher.

In the overnight markets, the trading range for July corn is 10 cents; the last trade shows corn up 14 cents at $7.41. The trading range for July soybeans is 11 cents; the last trade shows soybeans up 19 cents at $17.17. Chicago wheat is up 50 cents, KC wheat futures are up 49 cents, and Minneapolis wheat is up 42 cents.

Kluis Commodity Advisors predicts the initial corn crop rating in today’s USDA Crop Progress report will come in at about 70% good to excellent. This would be down 6% from last year but higher than 2019, when planting was delayed and the agency's first report came in at 59% good to excellent.

"Customers from Iowa, Illinois, and Nebraska are indicating they have the best yield prospects ever if we get normal weather through the end of the year," says Al Kluis. "I am watching the planting numbers today to see how much planting progress was made last week in North Dakota, South Dakota, and Minnesota.  It was cool and dry and great weather for planting. Many farmers who were able to get shorter-season corn are staying with corn; others will switch to soybeans rather than going with prevent plant."

2. Soybean sales fall to a marketing-year low while corn sales were up

From May 20 to 26, soybean sales dropped 60% from the previous week and were down 77% from the average, according to the USDA.

Egypt took 54,000 metric tons, the Netherlands purchased 68,400 tons, Mexico bought 50,900 tons, Colombia took 29,900 tons, and Tunisia purchased 27,100 tons from U.S. supplies. The purchases were offset by decreases as China canceled shipments of 72,200 tons, Italy nixed cargoes of 46,000 tons, and 29,300 tons from unknown destinations, the agency said.

For the 2022-2023 year, sales totaled 284,000 metric tons. Exports for the week fell 25% to 406,300 tons. The destinations were primarily to Egypt (118,000 tons), China (70,000 tons), the Netherlands (68,400 tons), Japan (35,100 tons), and Mexico (27,200 tons).

Sales of corn for delivery in the 2021-2022 marketing year totaled 185,800 metric tons, the USDA said. That's up 23% from the previous week but down 52% from the prior four-week average.

Saudi Arabia was the big buyer at 74,800 tons, Japan took 70,200 tons, South Korea purchased 65,500 tons, China bought 62,800 tons, and Mexico was in for 59,300 tons.

The total would've been higher but unknown destinations canceled cargoes of 284,900 tons.

Sales for delivery in the 2022-2023 marketing year were reported at 48,700 metric tons. Exports were down 13% from the previous week to 1.57 million tons, the USDA said.

Wheat sales through May 26 were down from the previous week and 98% lower than the prior four-week average.

Venezuela bought 7,000 metric tons, the Philippines was in for 3,000 tons, Mexico purchased 2,500 tons, Taiwan bought 2,000 tons, and Italy took 1,500 tons. Cargo totaling 18,000 tons was canceled, the majority of which was supposed to be shipped to Colombia.

Sales for the 2022-2023 marketing year totaled 363,500 metric tons. Exports for the week were reported at 372,700 tons, up 25%, the USDA said in its report.

3. Wet week ahead with risk for severe storms

The first full week of June will see the return of colder than normal temperatures to the Corn Belt, along with wetter trends stretching from Nebraska and Kansas eastward into Pennsylvania, according to WeatherTrends360. Periodic thunderstorm chances are expected Tuesday, Thursday, and Friday, with the best chance for severe storms on Tuesday and Thursday.

Severe thunderstorms are expected to move into parts of the Northern/Central High Plains and the Great Lakes as well as the Ohio/Tennessee/Lower Mississippi Valleys through Tuesday morning, according to the National Weather Service. Expect frequent lightning, wind gusts, and a few tornadoes with these storms. There is a marginal risk the thunderstorms will bring excessive rainfall to these areas. Parts of the Central/Southern Plains and the Middle/Lower Mississippi Valley will see a slight risk of excessive rain Tuesday into Wednesday morning.

The heavy rain expected with these storms will create localized areas of flash flooding, affecting areas that experience rapid runoff with heavy rain. Flood warnings have been issued for portions of Illinois, Iowa, and Kansas.

Read more about

Talk in Marketing