Grain Exchange – 5/19/2020
Markets are quiet this Tuesday morning as the USDA had no sales announcements to speak of. The weekly crop progress report was released Monday afternoon.
We’re seeing some heavy rains in the Eastern Corn Belt, and there are more in the forecasts all the way out to the 6-10 day maps. Lots of rain locally as well as some producers in Eastern Wisconsin so 4-6 inches over the last few days. The 11-15 day forecasts look drier, and were expected to see temperatures warm up. South America should see some beneficial showers hit, as the Brazilian safrinha corn crop and the Argentine wheat crop are looking for moisture.
Basis levels in the country are firming slightly as we see a lack of farmer selling. It’s likely we will need to see July corn futures hit $3.30 to see some new farmer sales on old crop bushels. Ethanol markets are slowly starting to pick up as they see some plants coming back alive.
Soybeans started the morning off firmer, but have quickly retreated. The Brazilians shipped 8.8 mmt of soybeans in the first two weeks of May. Last year they shipped about 10.0 mmt in the entire month. Markets are still watching the feud between China and Australia, as China has effectively banned Australian barley imports after Australia probed into origin of the Corona Virus.
Overall, markets seem quiet as they wait for some exciting news to trade.
Have a great day!