Corn and wheat end the week higher
Soybeans ended Friday mostly lower as Brazil continues to raise its crop production guess. CONAB adjusted its estimates to 153.6 mmt (5.64 billion bushels). While Brazil’s crop is a record, Argentina’s crop continues to decline and harvest pace is running well behind the 5-year average. The market continues to watch the weather forecast as planting got a solid start this week across much of the Corn Belt and Delta region.
Corn ended the week higher, with significant help from the two corn sales to China this week. On Friday the USDA announced a soybean sale of 382,000 mt (or 15 million bushels), part of it is for old crop and the rest is for 2023-24. Brazil’s second-crop corn is getting off to a good start, but corn harvest in Argentina is running behind the 5-year average and the quality isn’t great. Weather remains a factor, while much of the Corn Belt got a decent start this week, it will be a bit before the northern Plains gets underway as flooding is an issue in North Dakota and Minnesota. US Export sales are still running well behind year-ago levels.
The wheat complex was mostly higher on Friday as the trade continues to monitor the happenings in the Black Sea region. Russia has again threatened to pull out of the Grain Initiative if the West does not concede to Russia’s demands. Weather continues to play a role in the market as the southwestern Plains continue to be plagued by extreme drought conditions. There is some chance of rain in the forecast for Nebraska and Kansas, but it will take more than a shower or two to improve the drought conditions. Cold weather forecasts are also threatening both hard red winter and soft red winter wheat crops in some areas.