A wet forecast for the next couple of weeks kept the US futures market on the defensive. The forecast was determined as slightly bearish spring wheat but lent support to corn and soybeans. A stronger US dollar kept a cap on any substantial moves higher.

Corn futures continue to find support from the late planting. With wet weather predicted across much of Nebraska and Iowa for the next two weeks we will need to keep a close eye on the weekly crop progress reports. Just remember rain makes grain though and what is sown is getting a fantastic start to the season.
The same can be said for the spring wheat states. Durum acres are expected to climb back to a more traditional area after a couple of years of less than ideal springs saw sown acres shrink. The only real thing competing with an increase in durum acres in the USA and Canada is the strong pulse market.
We should see Brazil step up feed grain imports significantly in the short term. The second crop corn production was slashed by drought reducing total corn output by 3.6mt to 78.5. The late crop makes up about 51mt of the total. The biggest concern at present is if the export market will actually be able to fill existing contracts. Combine this with their domestic feed market trying to cover demand and it has already resulted in a 26% increase in their local values this month, lifting prices to double this time last year.