Corn futures are fighting back with May again posting the strongest gains at 3 cents. July is ½ cent higher, while December corn is down 5 cents. The weakness in the crude oil market this week is putting pressure on the corn market.
The bull spreads are working not only in corn, but in soybeans as well with May soybeans up 12 cents and November down 2 cents at this hour.
Wheat prices are lower after a higher start. I will watch the USDA Weekly Export sales report on Thursday. We may start to see price rationing (demand destruction) in the wheat market where high wheat futures, the high U.S. dollar, and high transportation costs could reduce U.S. wheat exports. Was last week’s dismal wheat export sales a one-week blip or is it a trend that is starting to develop?
Opening Comments: 9 a.m.
Corn and wheat prices have turned lower after a higher start. The news out this morning is minimal. Short-term, the wet cold weather in the U.S. should be supportive for corn. Long-term into early May, it looks like a pattern change.
At this time, May corn is down 4¢, and December 2022 corn is down 8¢. May soybeans are up 6¢ while November soybeans are down 5¢. The bull spreads are working in the corn and soybean markets.
Tomorrow the USDA Export sales report is released, and I expect some large numbers for corn and soybeans.
The USDA showed corn planting progress at just 4% on the Monday Crop Progress report, and with cold, wet conditions continuing I look for slow planting progress again next Monday.
Wheat prices are under pressure with CBOT wheat down 21¢. KC wheat is 14¢ lower, and Minneapolis wheat is down 10¢.
The May Grain options go off on Friday, which often creates some extreme volatility.
In outside markets, crude oil is up 60¢ per barrel. The U.S. stock market is higher, and livestock futures are mixed on light volume at this hour.
