Grain and oilseed trade was kind of a fiasco yesterday. Outside markets were highly volatile early with the dollar up and equities down sharply, but the extremeness of those markets calmed down quite a bit into the close. 8am daily USDA export reporting had folks hyped up early that it’d be a great day, but it wasn’t such a great day. The flash sales included 330k mt’s of US soybean sales to China and another 204k mt’s of US beans to China. Some of that total was old crop as well.
Weekly export inspections data was bullish corn, soybeans and milo and bearish wheat. The corn number was a new marketing year high at 65 mln bushels versus 50.2 mln needed each week to hit USDA’s export target for the marketing year. Milo inspections were 6.6 mln bushels and needed 5.4 mln to maintain pace. Soybeans came in at 22.1 mln and need 20.1 mln per week as an average. Wheat was 10.6 mln and needed 13.1 mln bushels.
The top destination in everything was Mexico for wheat, China for milo and soybeans and Japan for corn. China was #3 on the corn list as well.
Crop progress and condition data yesterday showed 7% of the corn crop planted versus 16/% last year and 15% as the average. 3% of the nation’s soybean crop is in the ground compared to 7% last year and 5% as the average. 13% of spring wheat is planted versus 27% last year and 15% as the average. Winter wheat crop condition ratings were 27% g/ex, which is down 3 points from last week. Last year it was 49% g/ex. P/vp ratings were 39% of the crop, which is 2 points worse than last week. Last year the number was 19%.
8am daily export reporting showed 133k mt’s of US soybean sales to unknown destination and 132k mt’s of US soybean sales to China. 78k mt’s of the grand total were old crop sales and that’s pretty awesome to be getting old crop sales this time of year when SA should be ruling the roost right now in world trade.
Stats Canada came out this morning with planting intentions data for up in da nort country. Total wheat acres are projected up 7.2% from last year and Canola down 7%. That’s the highlights.
6-10’s last night showed below normal temps from Nebraska and Iowa north and above normal from Kansas south. Precip was above normal for all of the Corn Belt, Northern Plains and far South. Kansas was split between above east and normal west. Colorado, New Mexico and the far western edge of the Panhandle were below normal on rainfall chances.
Finally, CME group came out with new grain price limits yesterday and they raised corn and beans and lowered wheat. Corn goes from 35c/bu up to 50c. Soybeans from 90c currently up to 1.15. KC and Chicago wheat limits were raised back in March. They are currently 85c/bu and they are going down to 70c/bu.
Pete Loewen
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com