The US corn planting progress reported this week had the US at 81% completed which is right at the average pace for this time of year. Wisconsin was reported at 56% completed as we continue to lag here with all the rain. Soybeans were reported ahead of average at 56% completed, compared to 44% on average. Wisconsin was at 33% complete. Spring wheat planting progress has improved at 79% complete vs 80% on average.
The markets this week have been reacting to headlines and tweets around the trade war with China. The US Treasury Secretary aid said that the trade war is “on hold” for now as they work on trade agreements. This has provided support to the markets once again. One premise of any deal to reduce the trade deficit would be China importing more US agricultural and energy products. Positive news to an already robust demand picture.
As we started trade out this morning corn, soybeans and wheat were all trading higher. The planting progress numbers were generally bearish so this strength has been led by wheat. Continued concerns over global dryness in wheat production areas around the world provides support. It is a bit dry in Russia, Argentina, Australia as well as the US growing areas. Nothing drastic yet but something to keep an eye on. The Brazil corn production forecast continues to be trimmed just a bit as less than ideal rains have been received in some areas. Also in Brazil truck drivers blocked roads leading to grain ports as a protest to higher fuel prices there.
The markets continue to provide some selling opportunities with these news headlines and crop progress concerns. Demand has been strong and things are changing a bit; however, the fundamentals, especially in soybeans still show an abundance of supply in the short term. Keep your offers in front of the market and keep selling as opportunities arise. If the balance of the US crop gets planted and progresses without any major growing season issues, we can easily trade lower.
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