From Allendale:
https://www.allendale-inc.com/soybean-planting-pace-well-above-average/
Grain markets are focusing on trade agreements. Last weeks talks between the US and China may have resulted in an increase for agricultural exports. More details are needed to confirm. NAFTA agreement is still on the table and could be impacted by political elections if not finalized soon. The US Dollar remains strong against other foreign currencies which creates a price disadvantage for US products.
US Farmers planting progress for corn is right on average and is now in line with last year. They have 81% complete verses 81% average. That was a 19% increase in one week for the US. Minnesota, Wisconsin and Michigan are behind their average pace due to wet conditions.
Soybean plantings are now 56% complete compared to 44% average and 50% last year. Spring wheat planting surged and is now 79% complete. That was over the 77% trade expectation. It is right next to the 80% five-year average.
Funds were estimated to have been net sellers of 4,000 corn and 8,500 wheat contracts on Monday. They were net buyers of 10,000 soybean contracts.
U.S. Commerce Secretary Wilbur Ross will travel to China next week to help finalize a trade agreement after Washington and Beijing reached an initial framework last week, U.S. Treasury Secretary Steven Mnuchin said. (Reuters)
Brazilian truck drivers used their trucks to draw attention to the increase in domestic fuel prices. They blocked major roadways around the capitals of the country's largest grain states to protest increases fuel prices, this action affected highways in 12 states, was reported federal highway police.
Here is the link to the USDA crop condition/progress report:
http://usda.mannlib.cornell.edu/usda/current/CropProg/CropProg-05-21-2018.txt
I thought for sure we would see a down day in corn given the crop progress. Strength is impressive. Me thinks that the heat might be playing a part here.
Agree about a down/that's impressive with market action. BUT BUT
Corn up 3 cents for the week and it seems yesterday and today follows wheat.
Considering how warm and dry the extended looks, am very surprised we are not stronger.
Beans are lower on the day........oops that was a couple of seconds ago, now we are up 2c......wait, now we are back to unch....extremely volatile.
THe latest GFS is pretty bullish. Below is what the maps will look like much of mid/late week 2. The last map is total precip. Drying out with each run. The models have been MUCH too wet for the last month and this one is too, though it now depicts very little rain across parts of the Eastern/Central belt the next 2 weeks.
The weather is clearly bullish. However, news on China might cause beans to go 20c in any direction in a flash.
 | gfs_namer_348_500_vort_ht |
gfs_namer_348_1000_500_thick | gfs_namer_348_850_temp_ht |
Yea, now Trump is saying his second meeting with Xi was disappointing. Probably why grains are dropping and crude tanked.
Thanks!
That explains it. I was wondering how the weather could maintain being bullish and beans drop 10c.
Canadian model has a bit more rains with the early week 2 system but it still looks like dryness is going to increase in parts of the belt over the next 2 weeks.
