Corn futures traded higher today led by gains in the July contract as old vs. new crop spreads bounce back higher. Delays to planting and the impact on yield continue to underpin the supportive tilt in the market place.
Planting progress is only expected to show minimal improvement next Monday with some suggesting 10% of the total crop may be left unplanted. Export demand continues to be sluggish for the old crop corn market but the new crop year has found interest from China.
Net weekly export sales came in at 85,700 tonnes for the current marketing year and 789,600 for the next marketing year for a total of 875,300.
As of May 23rd, cumulative sales stand at 91% of the USDA forecast for the current marketing year vs. a 5 year average of 92%. Sales of 123,000 tonnes are needed each week to reach the USDA forecast.
July Rice finished up 0.13 at 15.295, 0.045 off the high and 0.035 up from the low.
Soy Futures Closed Higher
July Soybeans finished up 14 1/4 at 1510, 13 off the high and 15 3/4 up from the low. November Soybeans closed up 15 at 1304 1/4. This was 15 1/2 up from the low and 10 1/2 off the high.
July Soymeal closed up 6.4 at 447.2. This was 6.9 up from the low and 3.8 off the high.
July Soybean Oil finished down 0.2 at 48.38, 0.5 off the high and 0.1 up from the low.
Soybeans traded sharply higher on the day with the July and November contracts both up double digits. The November contract traded up to its highest level since February 8th of this year.
The July/November spread found some support this morning following positive export sales data from the meal market but broke lower late in the session. Support came from planting delays and the possible negative impact on yield as a result.
Net weekly export sales for soybeans came in at -108,000 tonnes for the current marketing year and 756,600 for the next marketing year for a total of 648,600. As of May 23rd, cumulative sales stand at 99.5% of the USDA forecast vs. a 5 year average of 97.5%. Sales of 12,000 tonnes are needed each week to reach the USDA forecast.
Net meal sales came in at 149,200 tonnes for the current marketing year and 40,900 for the next marketing year for a total of 190,100.
Cumulative meal sales stand at 101% of the USDA forecast vs. a 5 year average of 82%. Net oil sales came in at 2,900 tonnes for the current marketing year and none for the next marketing year for a total of 2,900.
Cumulative oil sales stand at 84% of the USDA forecast vs. a 5 year average of 75.5%. Sales of 9,000 tonnes are needed each week to reach the USDA forecast.
Wheat Futures Closed Higher
July Wheat finished up 6 3/4 at 705 1/2, 2 off the high and 13 up from the low. December Wheat closed up 6 1/2 at 730. This was 13 up from the low and 1 3/4 off the high.
Wheat markets tracked lower this morning but managed to climb back into the green on positive gains in row crop markets.
The market traded with a negative vibe early in the day as the GMO wheat developments continue to unravel with South Korea acting as the latest major importer to announce that they will halt purchases from the US until tests are ran.
Japan announced they would halt purchases yesterday and the European Union has said they will begin testing imports. Wires also reported that the Black Sea sold Thailand feed wheat and Russia sold Iraq hard wheat.
Harvest is beginning in the southeast with local bids down 20 cents yesterday. Conditions remain favorable and reports suggest normal to above normal yields.
Exports sales came in at 35,900 tonnes for the current marketing year and 728,300 for the next marketing year for a total of 764,200.
Old crop sales hit a new marketing year low and were down 82% from the 4 week average. As of May 23rd, cumulative sales stand at 97% of the USDA forecast for the current marketing year vs. a 5 year average of 97.5%.
Sales of 598,000 tonnes are needed each week to reach the USDA forecast, up from 352,000 tonnes the week prior.
July Oats closed up 6 1/4 at 374 1/4. This was 8 1/4 up from the low and 1 off the high.
