Headlines:
- US rains send corn, spring wheat futures higher
Grain markets traded US weather, as slow plantings lifted corn and spring wheat prices, but soybeans fell, with ideas that any acres lost from the cereals will go to oilseeds. The USDA’s latest weekly corn progress report saw planting 17% complete, in line with expectations, and down just a point year-on-year. “The US corn producer was in full speed over the weekend,” said Darrell Holaday, at Country Futures,” suggesting “likely planting at a pace of 5% per day”. But that rapid sowing will be stopped in its tracks when rains hit the US Midwest. “That break neck speed in planting will come to a screeching halt late this week,” Mr Holaday said. “That is what is pushing the corn market higher today.”
- Speedy US corn, soy farmers face return of rain delays
More rains are on the way to test Midwest farmers, who used a dry window to good effect in accelerating spring corn and soybean sowings – outperforming wetness-beset wheat growers further north. US growers planted 11% of their corn crop in the week to Sunday – equivalent to nearly 10m acres, an area the size of Switzerland – as a break in Midwest rainfall allowed them to play catch-up after a rain-slowed starting to the planting season. The progress took corn seedings to 17% completion, only 1 point behind the average, and 2 points ahead of the figure that investors had expected. For soybeans, US farmers had 6% of their crop in the ground, twice the typical pace, and well above the 2% figure that investors had expected, US Department of Agriculture data showed.
Summary:
It’s been more than three months since the President Trump nominated Sonny Perdue as the Agriculture Secretary. Last night he was finally confirmed by the Senate on an 87-11 roll call (50 Republicans and 37 Democrats voted to confirm Perdue. Democrats cast all of the opposing votes.). After enduring an unprecedented delay, Perdue has his hands full with as he has none of his key nominee positions filled. He was sworn in this morning and then joined President Trump at an agricultural roundtable discussion at the White House in the afternoon. According to White House adviser/spokesman, Ray Starling, the President will be signing an executive order forming a 180-day taskforce review of regulations, policies and laws that hinder economic growth in agriculture.
Our suggestion that a looming disruptive event would be the catalyst to send Corn prices higher might be starting to show its head, Soybean futures closed lower today but Corn and Wheat were higher amid “conflicting fundamentals” and spread trading according to the trade. Bearish traders sought to find solace in the Corn crop making up ground reach 17% planted as of Sunday, which is only 1% point behind the 5- year average. Soybeans were reported at 6% seeded (2x the five-year average) and price appeared to suffer some from the results. Overseas, the EURO Dollar responded well to French election results and the US Dollar has been weaker. Anticipated demand and weakness in the greenback has perhaps been the solid ground on which Corn looks to rest. Analysts also said there was some spread trading occurring with investors selling Soybeans and buying grains.