For the week, grain trade was relatively quiet. The primary market maker this week was weather. Early in the week frost and freeze warnings were issued for parts of the upper Midwest, potentially putting some of the young corn crop at risk. When the threat passed with little impact, Monday’s weather premiums were quickly taken back. As the week progressed, corn resumed it’s mundane sideways trend, while soybeans continued their slow decent lower.
Wheat markets were also playing with the corn markets this week. Wet weather over parts of Southern wheat crops are beginning to negatively impact production and quality potential. This had led to some short-covering gains in wheat, with corn an additional beneficiary.
Monday’s planting progress is expected to show nearly 85% of corn planted and 65% of soybeans in the ground nationally. We should also get our first condition rating for corn, with estimates putting 78% of the crop in the Good and Excellent categories. Should this prove out, it is possible we will start to hear more debate about potential yield with early planting and high ratings this early in the year.
With Memorial Day on Monday, there will be no markets Sunday night or Monday. The long weekend has many traders vacating the floor early, resulting in a quiet, thin trade. Weekend rains over wheat country will likely impact market direction when trade resumes Monday night.
CHS – Rochester Grain Team
Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234
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