Wet weather prevails across the Midwest, our weather market has commenced. Despite a great start to the planting season, continued rain in the southern corn belt has delayed soybean planting and wheat harvest. The unsettled, wet weather pattern looks to persist for the immediate term, which has caused crop condition ratings to fall. The falling ratings along with delayed wheat harvest has pushed prices higher for the week. Old and new crop futures in both corn and soybeans enjoyed significant gains this week. For the week, corn was up over $0.30 while soybeans rose nearly $0.45.
The price rally was just what the farmer was waiting for, enough to pull stocks out of storage and into the supply pipeline. End users were seemingly flooded with new grain purchases this week, which was clearly reflected by in the falling basis levels. Thus far, old crop basis has taken the brunt of the damage, especially in soybeans. With ample old crop supplies in the country, end users are unwilling to pay one cent more than necessary for the next bushel purchased. Enough questions remain around new crop acreage and production that basis levels there are holding steady. We will get a better idea of those figures on Tuesday when the USDA releases the June 1st Stocks in all positions and Planted Acreage reports.
CHS – Rochester Grain Team
Kasson: 507-634-7545 ext 7
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