Search
Close this search box.

Grain Comments: 05.16.23

Corn was 1-2 cents lower overnight, soybeans were down 8-10 cents, and wheat was off 2-4 cents as buying interest faded. The US dollar and energies were weak while equities were mixed.

 

Today’s Reports: Retail Sales, Industrial Production

 

  • Argentine soy yield worst in 45 years at 23.2 bpa
  • Weather favorable to finish US planting
  • Barge demand to remain light all summer

 

As of Sunday evening, the US corn planting pace had reached 65% compared to the five-year 59% average. Corn emergence is also ahead of normal at 30%. The only state where planting remains slow is North Dakota where just 5% of the crop is in compared to the normal 26% for this date. Soybean planting reached 49% finished and emergence is at 20% which are ahead of average as well. The planting of the spring wheat crop came in at 40% which is down from the normal 57%. Emergence on the spring wheat crop is also 10% behind normal at 13%. The winter wheat crop rating held at 29% Good/Excellent for the week. Now that the US planting season is this far advanced trade will start paying more attention to long-range weather outlooks and their potential impact on yields. At the present time there is little reason for concern on the weather front which has greatly reduced rick premium in the market. There are still areas of concern though, mainly the Southern Plains where drought continues. Sources in this region believe it may take a full year for soil moisture to get back to sufficient levels. There are also some concerns over drier conditions in the Pacific Northwest and what they may mean for wheat production in that area. These worries are the primary reason for wheat showing more strength than corn and soybeans in recent sessions.

 

Highlights

* China CPI rising faster than expected

* China PPI down for 7 straight months

* Lower commodity values impact import forecasts

* Privates continue to lower Argentine crops

* Financing may impact Argentine plantings

* NOAA puts El Nino odds at 90%

* Geo-politics affecting global commodity flow

* Sudan conflict impacting Egypt wheat supply

* Cumulative US grain exports falling short of needs

* US soy exports closer to needs

 

Corn

* Global corn trade is down

* Wheat displacing corn in feed

* China remains a heavy wheat feeder

* US corn commitments a 10-year low

* Brazil not raising export forecast

 

Soybeans

* April NOPA crush 173.2 mbu

* April soy oil stocks 1.96 billion pounds

* India veg oil imports +15%

* China continues to push for less soy meal use

* US seeing elevated meal demand

View All News >