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Daily US grain report: mixed figures with the focus back on Midwest weather

US grain futures prices were mixed overnight. Corn and soybeans were solidly up, while wheat futures were down on a correction from Monday’s (3 June) good gains.

4 June 2019, at 1:49pm

The US Agriculture Department on Monday (3 June) afternoon said US corn and soybean planting were still way behind the average pace for this time of year. Corn planting progress was less than expected at 67 percent (71 percent forecast) and compares to a rate of 58 percent complete last week and 97 percent at this time last year and 97 percent for the five-year average.

July corn
July corn

Corn markets corrected Monday's gains, but were still up from previous levels. © JIm Wyckoff

US soybean planting progress was pegged at 39 percent this week (42 percent was expected) and a pace of 29 percent last week, 87 percent at this time last year and 75 percent for the five-year average. Hard red spring wheat planting progress was at 93 percent done, which was as expected and compares to 84 percent last week, 97 percent last year and 97 percent for the five-year average.

Weather forecasts for the Corn Belt are a mixed bag, with some areas seen drier in the coming days and others receiving scattered rains, with some heavy rains. Still, the weather forecasts favour the grain market bulls.

All kinds of trader uncertainties revolve around the US corn, soybean planted acres mix and how many farmers will take an insurance option of “prevent-plant.” What is known is that the crops that do get planted now will be well behind in maturity as the growing season progresses. That means likely lower yields for late-planted crops come autumn.

The US-Mexico, US-China trade tensions are presently giving the grain market bulls some pause, but US Midwest weather remains paramount in grain traders’ minds.

July soybeans
July soybeans

Planting in the US is behind schedule - this may impact future yield. © Jim Wyckoff