- As of 7:00 AM CT: US dollar index is up .19%at 80.379, European Stoxx is up .12%, Nikkei closed up .87%, Hang Seng closed up .05%, crude oil is up 24 cents at $103.98 per barrel, and gold is down $1.50 at $1293.40 per ounce.
- Dry weather in the Northwestern Midwest through Saturday will allow planting progress to continue at its rapid pace. The 6-10 day forecast shows improved chances of moisture in the Southern Midwest that will benefit newly emerged corn and soybeans. Rains will continue in the Southern Plains through May 27 relieving the drought stricken areas.
- The northern tier of the Corn Belt is pushing hard to get crops planted ahead of crop insurance deadlines and rains that are expected to move in within the next 5 days.
- Germany’s business confidence reading fell from 111.2 in April to 110.4 in May amid signs that growth in the country’s economy will slow this quarter. Germany is key to the euro area economic recovery efforts.
- Vladimir Putin said Ukraine is in full-scale civil war after government troops suffered their worst losses in battles with separatists.
- Rains benefitted Nebraska and Kansas yesterday, while the states of Minnesota, North Dakota, and Wisconsin stayed dry allowing planting progress to continue in the areas that are furthest behind.
- Even though good progress is being made, with corn planting behind in the North and additional rains in the forecast, it is likely that corn will lose some acres to either preventative plant or soybeans.
- Old crop corn export sales were revealed at 20 million bushels yesterday by the USDA. We only need 11.8 million bushels weekly to hit current USDA projections.
- Basis levels are steady to slightly better as producers are not moving grain with their focus on planting.
- China will auction 3.5 mmt of corn from its temporary reserves on May 29, according to the National Grain & Oil Trade Center.
- The CZ4/CH5 spread seems to be content to sit at slightly better than a 9 cent carry for the time being.
- July soybeans put in a new contract high yesterday of $15.36 ¾, but settled the day at only $15.18 ¾. The front end of the soybean curve is once again showing strength overnight.
- July soy-meal closed above $500 per ton for the first time yesterday, and has continued to move higher in overnight trade.
- There is some chatter that processors are contemplating switching bids from the July to the August board.
- Old crop soybean exports out of the U.S. were once again net positive yesterday at 6.04 million bushels. We simply cannot afford to continue to export soybeans with our current domestic balance sheet.
- Talk of South American soybeans being imported into the U.S. continues, but quantifying the amount is proving difficult.
- China will auction 300 tmt of soybeans from its temporary reserve on May 27, according to the National Grain & Oil Trade Center.
- Rains will continue through May 27th in the Southern Plains with general coverage of 2 inches according to Commodity Weather Group LLC.
- Precipitation looks to hold off in the Northern spring wheat growing geographies until late in the weekend, which will allow planting to continue to advance in both the U.S. and Canada.
- Old crop wheat (crop year ending May 31st) exports yesterday were revealed at 5.2 million bushel. This is behind the needed weekly pace to hit USDA projections.
- Kazakhstan agreed to sell 100 tmt of wheat to China for the 2014/15 crop year. Kazakhstan exported 10 tmt of wheat to China last year.
- South Australian sub-soil moisture is adequate to excellent in most areas with producers gearing up to plant.