Afternoon report: Corn, soybeans and CBOT wheat contracts spend Friday in the red.
Grain markets were mixed but mostly lower to end the week, with traders largely shrugging off a flurry of flash sales announced this morning. Corn prices slid nearly 1% lower, with soybeans down almost 2%. Wheat prices were mostly narrowly mixed, with Chicago contracts shifting 0.25% lower and Kansas City contracts picking up gains of around 0.25%. Minneapolis contracts saw the most upside, trending 0.8% higher by the close.
It’s been spring for a full month, yet another blizzard is set to rake across the High Plains, featuring plenty of unwanted high winds and snow. And most of the central U.S. will see at least some measurable moisture between Saturday and Tuesday, per the latest 72-hour cumulative precipitation map from NOAA. The agency’s 8-to-14-day outlook predicts more cooler-than-normal weather for most areas north of I-70 between April 29 and May 5, with extended seasonally wet weather for the Northern Plains and upper Midwest during that time.
On Wall St., a selloff pushed the Dow 840 points lower in afternoon trading to 33,952 on a round of disappointing Q1 corporate earnings reports and ongoing concerns about high inflation and the prospect for multiple interest rate hikes later this year. Energy futures were mixed but mostly lower. Crude oil retreated 2% to $101 per barrel. Gasoline fell nearly 1.5%, while nearby diesel contracts firmed 0.75%. The U.S. Dollar firmed moderately.
On Thursday, commodity funds were net buyers of soybeans (+1,500) and soyoil (+2,500) contracts but were net sellers of corn (-13,500), soymeal (-2,000) and CBOT wheat (-10,500).
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Corn
Corn prices failed to follow through on bullish export sentiment after falling nearly 1% lower on a round of technical selling and profit-taking to close out the week. May and July futures each dropped 7.5 cents to $7.9175 and $7.8775, respectively.
Corn basis bids firmed a penny higher at an Illinois river terminal while falling 4 to 6 cents at two other Midwestern locations and holding steady elsewhere across the central U.S. on Friday.
Private exporters announced two large corn sales to USDA on Friday. The first was for 53.0 million bushels for delivery to China. Fifty-four percent of that total is for delivery during the current marketing year, which began September 1, with the remainder for delivery in 2022/23.
The other corn sale announced this morning is to Mexico, with 3.6 million bushels for delivery during the current marketing year and 7.5 million bushels for delivery in 2022/23.
French farm office FranceAgriMer estimates that 32% of the country’s corn crop has been planted, up sharply from last week’s pace of 8% but still five points below year-ago progress of 37%.
Ahead of the next Statistics Canada planting intentions report, out next Tuesday, analysts expect that agency to show 2022’s corn footprint at 3.41 million acres, which would be 2.3% below 2021’s total, if realized.
Preliminary volume estimates were for 384,735 contracts, trending moderately above Thursday’s final count of 289,493.
Soybeans
Soybean prices declined nearly 2% as traders locked in profits on a round of technical selling to close out the week. Losses from other commodities generated additional headwinds today. May futures tumbled 33.25 cents to $17.15, with July futures down 32.75 cents to $16.8675.
Soybean basis bids were steady to mixed on Friday, tilting 2 cents lower at two Midwestern locations while falling 3 to 5 cents lower at two other locations today.
Private exporters announced to USDA the sale of 5.3 million bushels to Mexico. One-third of that total is for delivery during the current marketing year, with the remainder for delivery in 2022/23.
Indonesia is banning palm oil exports from April 28 until further notice to protect its domestic supplies. “I will monitor and evaluate the implementation of this policy so availability of cooking oil in the domestic market becomes abundant and affordable,” according to President Joko Widodo. Coupled with Ukraine’s sunflower oil export struggles, soyoil prices are now at a record high after climbing substantially higher today.
China plans to auction off 18.4 million bushels of its state soybean reserves on auction next Friday, per a notice from the county’s National Grain Trade Center.
Preliminary volume estimates were for 242,170 contracts, shifting 17% above Thursday’s final count of 207,279.
Wheat
Wheat prices were mixed but mostly higher on a round of uneven technical maneuvering as traders continue to assess poor crop quality in the U.S., along with production and export challenges in Ukraine. May Chicago SRW futures eased 2.75 cents to $10.6525, while May Kansas City HRW futures picked up 2.5 cents to $11.4025 and May MGEX spring wheat futures rose 9.25 cents to $11.6075.
French farm office FranceAgriMer reports that 91% of this season’s soft wheat crop is rated in good-to-excellent condition through April 18. That’s down a point from the prior week but above year-ago results of 85%.
Ukraine has planted 3.880 million acres of spring crops through April 21, which is around 21% of the total planned for this season, per the latest data from its agriculture ministry. That includes spring wheat, spring barley, peas, oats and more. Ukraine’s agriculture ministry expects total acreage to fall 20% this year amid the ongoing Russian invasion.
Ahead of the next Statistics Canada planting intentions report, out next Tuesday, analysts expect that agency to offer an all-wheat acreage projection of 24.15 million acres this season, which would be a yearly gain of around 691,000 acres, if realized.
If it’s been awhile since you’ve visited FarmFutures.com, be sure to head over and read “7 ag stories you might have mixed” to quickly catch up on the industry’s top headlines. The latest batch of content includes stories on 2022 planting progress, new research for tar spot resistance, a tech company using artificial intelligence for longer-term weather forecasting and more. Click here to get started.
Preliminary volume estimates were for 61,309 CBOT contracts, sliding slightly below Thursday’s final count of 68,932.
Settlement Prices for Key Commodities
High
Low
Last
Change
Corn $/bushel
22-May
807.5
783.5
793
-7.5
22-Jul
804
780.5
789
-7.5
Soybeans
22-May
1757.5
1704.25
1716
-33.25
22-Jul
1734
1676
1688
-32.75
Soymeal $/ton
22-Jul
465.1
451.5
452.1
-11.7
Soyoil cents/lb
22-Jul
83.21
79.02
80.51
0.66
Wheat $/bushel
22-May
1076
1052.5
1065.5
-2.75
22-Jul
1085.5
1060.75
1075.25
-3
KC Wheat
22-May
1151.25
1128.75
1142.75
2.5
22-Jul
1157.25
1133.25
1149.5
3
MPLS Wheat
22-May
1168
1146.5
1160.25
9.25
22-Jul
1168
1147.25
1162.75
9.25
Live Cattle cents/lb
22-Apr
143.85
142.225
142.4
-1.7
Feeder Cattle cents/lb
22-May
165.1
163.6
163.6
-1.25
Lean Hogs cents/lb
22-May
119.85
117.1
118.7
1.525
Crude Oil $/barrel
*Energy prices may not represent final settlements
22-May
104.22
101.22
101.7
-2.09
Diesel
22-May
3.9761
3.8246
3.9342
0.0334
Unleaded Gasoline $/gallon
22-May
3.3333
3.2539
3.2889
-0.0497
Natural Gas
22-Jun
7.214
6.594
6.606
-0.49
U.S. Dollar Index
22-Jun
101.34
100.485
101.18
0.566
Gold $/ounce
22-May
1954.2
1926.7
1932
-12.9
Copper
22-Apr
4.6495
Fertilizer Swaps
(as of 04/15)
DAP Tampa-index
1,240.0
0
DAP-New Orleans
1,052.7
0
Urea-New Orleans
854.3
-33.07
Urea-Middle East
995.0
-125
Urea-Black Sea
585.0
35
UAN (32%) New Orleans
694.5
-5.51
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