Morning Comments May 22, 2018
Tuesday, May 22, 2018, 9:05 AM
Submitted by: Landus Cooperative
Corn +2 to 3
Beans +5 to 6
Overnight, corn and beans traded both sides, with corn up 3 at the break, for both nearby and new, while soybeans ended 6 higher nearby and 5 1/4 on new crop. Markets continue to be driven by improved China trade relations and weather.
The Planting Progress Report yesterday afternoon showed the U.S. corn crop is now 81% planted which is equal to the five-year average. Corn is 50% emerged, which is 3% ahead of average. The soybean crop is now 56% planted with the average only being 44%. Soybeans are 26% emerged, a whopping 11% ahead of average. As expected, U.S. farmers can get a big crop planted extremely fast if given a few good days of weather!
The markets are following wheat in the overnight session as it has made up is losses yesterday as dryness continues in the U.S. southern Plains. Dry conditions are also developing in the Canadian Prairies as well as eastern Europe. As for Midwest weather, the outlook is turning drier, allowing fieldwork to advance, but also has traders worried that it may persist and even strengthen into the summer months.
In the next few weeks, Commerce Secretary Ross will be traveling to China to iron out the details of the new trade deal. China did announce overnight that it will cut tariffs on imported autos from 25% to 15% beginning July 1st. NAFTA members also continue with negotiations – the next unofficial deadline is before the Mexican Presidential elections on July 1st.
Thank you for your business, and have a great day! Please call anyone on the Landus Cooperative team with any questions or concerns!
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