Tuesday, May 17, 2022
Morning Markets: Corn -2 Old & -1 New. Beans +5 Old & +2 New. Wheat -14.
MARKET SUMMARY:
Corn futures were 6-8 cents weaker overnight, soybeans were 2-4 cents lower, and wheat was down 20-25 cents as yesterday's buying enthusiasm faded. The US dollar was sharply lower while the energies and equities were higher. Corn planting across the United States was slightly higher than trade was expecting with 49% of the crop now seeded. While this was a sizable increase on the week it still trails the average pace of 67%. Corn is now 14% emerged with the normal amount being 32%. Soybean planting fell just under trade expectations with 30% of the crop in. This also trails the normal rate by 9%. Soybeans are reported as 9% emerged though, just under the average amount of 12%. On the winter wheat crop all interest was on the rating and this fell to just 27% Good/Excellent as drought and heat continue to impact the Lower Plains states. Spring wheat planting remains heavily delayed with 39% of the crop planted and a normal pace of 67%. What trade may focus on rather than the planting pace on corn and soybeans this week is how much fieldwork will be done in the next seven days. It is likely more planting was done last week than data shows as the weekly numbers are taken as of Sunday. A large volume of planting was done between then and the Monday afternoon release, and much more will be done this week.
Crude Oil is up $0.72 at $114.92
US Dollar is down $0.670 at $103.517
Global Equities: Japan +0.2% China +3.3%, and Europe +1.6%
Dow futures is up 395 points at 32,554
EU MATIF Exchange: Corn -1.5%, and Wheat -1.9%
Malaysian Palm Oil: no change
Dalian: Corn +0.5%. Soybeans -0.4%. Meal +0.6%
WEATHER:
• Temps will remain warm through most of the week with a few rain chances on Tuesday night into Wednesday. Temps will cool into the 60s as highs this weekend with a few more rain chances.
OTHER HEADLINES:
• The U.S. Agriculture Department announced on Monday $6 billion in emergency relief payments for farmers impacted by natural disasters in 2020 and 2021. The funding can help cover damage to crops, trees, bushes, and vines from wildfires, hurricanes, floods, drought, and extreme temperatures and comes from a bill President Joe Biden signed into law in September.
• The Kremlin said on Tuesday that Russian fertilizer producers were trying to fulfil contracts despite Western sanctions against them, which posed a risk to global food security. Spokesperson Dmitry Peskov was responding to a question about a reported proposal by U.N. Secretary-General Antonio Guterres that Russia allow the shipment of some Ukrainian grain to alleviate a global food crisis in return for facilitation of Russian and Belarusian exports of potash fertilizer, currently restricted under sanctions over the conflict in Ukraine. Peskov said Russia's suppliers were interested in fulfilling international contracts, but that "sanctions have been introduced, which are boomeranging all over the world".
• Mexico will waive import duties for one year on a range of household staples, most of them foodstuffs, in a bid to curb inflation, the government said on Monday. The government unveiled the plan in its official gazette after earlier this month agreeing with businesses to increase production of staples such as corn, rice and beans to control inflation, which is at an over two-decade high. The products on the government import list included corn oil, rice, tuna, pork, chicken, beef, onions, jalapeño peppers, beans, corn flour, wheat flour, eggs, tomatoes, milk, lemons, white corn, apples, oranges, wheat and carrots.
• Brazilian sugar cane mills are cancelling some sugar export contracts and diverting production to ethanol to cash in on high energy prices, according to people with direct knowledge of the deals, raising concerns of a sugar shortage. Nearly every company involved in sugar trading in Brazil has seen cancellations, a trader at a large international commodities merchant told Reuters on the sidelines of Sugar Week in New York last week.
• India will allow overseas wheat shipments awaiting customs clearance, the government said on Tuesday, introducing some relaxation in exports after it banned overseas sales of the staple on Saturday. India will also allow wheat exports to Egypt, the government said in a statement. “It has been decided that wherever wheat consignments have been handed over to Customs for examination and have been registered into their (Customs) systems", either on May 13, 2022, or earlier, would be allowed to be shipped out, the government said.
• A frost threat exists for the Safrinha corn crop in Parana later this week and into the weekend. Crop damage is expected to be relatively minor as much of that region has already suffered from drought conditions. Here in the US, the weather maps are showing a seasonal pattern for moisture although temperatures are trending below to well-below normal for the Upper Midwest and Great Lakes region.
EXPORT NEWS:
• N/A
Have a wonderful day!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
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