Corn: 2 higher
Soybeans: 4 to 5 higher
The corn market ended the week lower on Friday with the long weekend ahead and not a lot off bullish news to support prices. Corn in Argentina is becoming more competitive and there is concern that potentially some of the export demand may shift there. There is currently optimism about ethanol plants beginning to resume production as the gasoline use and ethanol margins start to recover. We have a ways to go to get things back to a “pre-COVID” level of ethanol production though. It’s estimated that close to 90% of the corn crop had been planted by Sunday afternoon, so unless there is some extreme weather during the summer that would derail the corn crop it seems that it will be hard for corn prices to rally. Corn is trading higher this morning with the strength in the soybean market.
The soybean market closed lower on Friday with concerns about the impact of Chinese demand for U.S. beans with everything going on in Hong Kong jeopardizing the U.S./China phase-one deal. As of Sunday between 72% and 76% of the soybean crop has been planted. The soybean market is trading higher this morning due to the dollar trading lower and the relations with China appear to be better. There are some concerns about the planting progress for the remaining 25% of the crop due to wet conditions in some areas.
We hope you enjoyed the long weekend and the Memorial Day holiday. As we move closer to harvest each and every day, we encourage you to talk with you GMA and figure out a personalized plan for your operation for both new crop grain and old crop grain that remains in the bin.