Wet US Conditions Boost Corn, Wheat Prices

Lloyd Doyle
May 23, 2019

Much of the focus in recent months has been on how the trade tensions have cut soybean exports to China, pushing soy prices lower, O'Brien said, but the potential spillover effect is that US farmers will plant fewer acres to soybeans this year and instead plant more corn.

"Weather forecasters now have the USA corn-planting window coming to an end with farmers struggling to plant", said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

Below USDA trend-line yields for US corn, soybean and wheat crops are becoming more of a reality with each passing wet day.

Wheat falls for 2nd session after climbing to 3-month top * Corn unmoved, US planting delays support prices (Adds details, quote) By Naveen Thukral SINGAPORE, May 23 (Reuters) - Chicago wheat futures slid for a second session on Thursday with pressure from expectations of bumper production across much of northern hemisphere. "Combined with a big investor short, the market is galloping higher".

Top exporters, led by Russian Federation are forecast to harvest bumper crops in the coming months. The U.S. Department of Agriculture said on Monday that a lower-than-expected 49% of the U.S. corn crop has been planted, the slowest pace on record, based on data going back to 1980. U.S. soybean plantings were reported at 19 percent complete.

At least for the moment, US grain traders have pushed aside the US-China trade war that had pressured grain prices for so many months.

United States grain futures prices were again solidly higher in overnight trading, with corn and wheat markets hitting three-month highs.

Estimates for wheat ranged from funds buying a net 4,000 contracts to selling a net 2,000 contracts.

"Since December 2018, USA corn prices had been moving in a pattern contrary to a normal seasonal price pattern found in Kansas, with essentially no seasonal price increases", said Dan O'Brien, K-State Research and Extension agricultural economist in a report released May 17.

Other reports by Iphone Fresh

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