Weekly Market Summary June 1, 2018
Friday, June 1, 2018, 2:06 PM
Submitted by: Landus Cooperative
Even with the shortened trade week, markets had an overall rough time with little time spent in the green. The White House announced Tuesday they were continuing to pursue the 25% tariff on $50 billion worth of goods from China, with a more specific list to be released in mid-June. Corn and soybeans both closed in the red on Tuesday, with corn contracts ending down 6 cents and soybeans down 11 cents. This week’s crop progress report showed a majority of corn planting is wrapped up, 92% in the 18 states surveyed. This is ahead of last year as well as the average. Corn emergence is also ahead at 72%. We are also starting to see condition ratings for corn, 82% of Iowa’s crop rating Good/Excellent this week and all 18 states rating 79% G/E compared to 65% last year. We are not yet seeing condition ratings on soybeans, but planting and emergence are running ahead of average.
Corn and beans continued the downhill slide on Wednesday, both ending the day down 7 cents. Thursday was mixed, corn closing up 3 cents and soybeans closing down 3 cents. Tables turned slightly today, with corn closing down 3 cents and soybeans closing up 3 cents. Overall, corn contracts lost between 13 1/4 and 14 1/2 cents from last Friday’s close, and soybeans lost between 15 3/4 to 20 1/4 cents for the week.
We will be watching to see how the trade discussions between the U.S. and China proceed in the next couple of weeks, but it is difficult to tell how much of the downward pressure this week came from political developments vs. the overall optimism of the U.S. crop’s production potential. As always, trade also continues to keep an eye on South America’s production. Argentina’s harvest is estimated at just shy of 37% this week behind the average of 39.7%. In contrast, Argentina’s soybean harvest is 3.8% ahead of the average at 89.3%.
We could’ve just seen the hottest May on record. A friendly reminder to take precautions against the heat if you are going to be out in these blazing temperatures, but it looks like we might get a reprieve this weekend in some areas if the forecast is to be believed.