Grain News: May 2, 2019 – Rain Makes Grain But Not In May
Rain makes grain but not in May. It seems like we keep beating the same drum with the markets. Currently corn is steady, beans are down, and wheat is up. All the news is the same old thing, weather, China and technical.
The weather trend since last fall has been repeated systems of rain/snow moving across major corn, wheat and soybean production area. Frequent showers are expected into middle of next week. Moisture totals are expected to be 1 to 2 inches in the north and from 1 to 3 inches in central and southern areas.
On the U.S. – China trade talks, U.S. Treasury Secretary Steve Mnuchin and U.S. Trade Representative Robert Lighthizer led the U.S. team in a meeting in China Monday through Wednesday. Chinese representatives are scheduled to meet in the U.S. next week. It seems like an agreement is getting close, but the final items left are the most contentious.
Corn prices are at the weakest level in the last ten years for the current period. Traders are at a record net short position which could signal volatility when the market starts moving. Weekly export sales were disappointing this week. The wet weather will keep field work limited so corn should find some support.
Soybeans are lower this morning for the fifth consecutive session. Exports were poor for beans, meal and soyoil. Soybean market conditions for the remainder of the marketing year will be driven by weather and exports to China.
Wheat is rebounding some today due to rain forecasts for SRW areas. Crop tour has started and is finding mixed bag of yields.
Keep in touch with your Grain Marketing Specialist and get your offers in so you can make some sales. You may want to take advantage of our free delayed price program. You can haul grain into the elevator and price it on a rally.
As the rain delays continue and you are under pressure to get the crop in, please take the time to be safe.