TFM Midday Update 05-29-2024

CORN

Corn is trading lower for the second consecutive day as planting progress continues despite the recent wet conditions. July corn has been hovering around its 21-day moving average for over a week while December corn has done the same.
Yesterday’s Planting Progress report showed corn plantings at 83% completed which was right on par with the average trade guess, was up from 70% from last week, and compares to the 5-year average of 82%. Progress is now above the 5-year average which is likely pressuring futures. 58% of the crop is emerged which compares to 40% last week and the 5-year average of 58%.
Argentina is finally set to begin corn exports to China starting in July after striking an export agreement last year. Brazil is China’s number one supplier of corn, and this could make Argentina the second largest supplier.

Soybeans are trading lower again at midday with more pressure from soybean meal while soybean oil trades higher. Similar to corn, soybean plantings are further along than previously expected despite the rainfall and progress in South American harvest, both of which are pressuring prices.
Crop progress showed soybean plantings at 68% complete which compares to the trade guess of 67%, 52% last week, and the 5-year average of 63%. The crop is 39% emerged which compares to 26% last week and the 5-year average of 36%.
Brazilian soybean exports are expected to reach 13.74 million metric tons for the month of May versus 13.83 mmt expected the previous week. Soybean meal exports are expected to be slightly lower than anticipated.

Wheat is mixed at midday with Chicago and Minneapolis both higher, and KC wheat lower but near unchanged. KC wheat is weaker despite a downgrade in winter wheat crop ratings.
Yesterday’s Crop Progress report showed spring wheat plantings at 88% complete which compares to 79% last week and the 5-year average of 81%. 61% of the crop is emerged which compares to 43% last week and the 5-year average of 52%.
Winter wheat is 77% headed which compares to 69% last week and the 5-year average of 69%. The good to excellent ratings were lowered by 1% to 48%, but still compares to last year’s rating of 34% at this time.

Amanda Brill