More rain on the map in the US had soybeans lower, corn higher and wheat lower in
overnight trade at Chicago. Thought’s that late corn acres will be abandoned and
sown into beans has the bean market on the defensive while the forecast of rain
across the SRW and HRW states has wheat yields getting bigger and bigger.
The USDA crop progress report was out after the close and pegged corn planting at
86% sown, now only 1% above the 5 year average. Most importantly though there
was good progress in the major producing states. There are only a couple of states
now lagging substantially and they are Indiana, Michigan, and Ohio, the heart of soft
red wheat country. We should start to see more support for SRW on the back of
disease if this is the case.
With 96% of the Kansas wheat crop now in head and a week of wet weather being
predicted we may also start to see more support in wheat as the punters try to kill
the crop again. Just remember this is red wheat though, not white wheat like we
grow here, red wheat doesn’t sprout at the mere smell of rain like white wheat
does.
US crop condition ratings on wheat were unchanged week on week and remain at
62% Good to Excellent. US spring wheat plantings were ahead of the 5 year average
and generally almost complete.