Our markets traded somewhat mixed overnight after a wild day yesterday! Not long after the market opened yesterday morning, corn and soybean futures both got pounded lower after Bloomberg reported that several Chinese feed mills have cancelled corn purchases (per direction from the Chinese government). This triggered a bunch of selling but once the dust settled, the market seemed to recognize that this was only 1m MT of U.S. corn (not much) and it appears that the Chinese government was ready/willing to buy the corn that the Chinese companies are selling back. The corn market yesterday went from being 4c higher, to 18c lower and back to 4c higher again all in about an hour and a half yesterday. Fun stuff, right?
So, what will today bring? Well, the main driver that threw our futures markets into this lower trend still exists today – U.S. weather is overall pretty positive. Yes, it’s early in the growing season, but this is all we have to go off of for now. The long-term forecasts do appear a touch dry into the Summer, but it’s not as severe as some forecasters had feared.
Speaking of U.S. weather, we are finally seeing precipitation coming for North Dakota, but it’s coming in a snowy/mixed fashion! Yuck. They can’t really catch a break there and the spring wheat crop ratings (already off to an ugly start) likely won’t improve this week. This has wheat trading higher this morning which seems to be pulling corn futures higher with it. While we are talking about spring wheat, there has been a little market chatter that the poor spring wheat conditions could have flipped a few more acres to corn. The USDA’s acreage report on June 30th will be VERY interesting.
Corn is 5 to 9 cents higher
Soybeans are 3 to 6 cents higher