Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn and wheat falling and soybean rising sharply.
The most active corn contract for July delivery fell 10.25 cents, or 1.3 percent, to settle at 7.8125 U.S. dollars per bushel. July wheat lost 1.25 cents, or 0.11 percent, to settle at 11.775 dollars per bushel. July soybean rose 32.75 cents, or 2.03 percent, to settle at 16.465 dollars per bushel.
Soybeans went up sharply amid continued strong export demand from China and others. Corn has resumed consolidation mode as weather trends warmer and slightly drier over the next 10 days, extending the current window for planting across the Central Plains and much of Iowa into May 22. Wheat has been subject to simply profit taking following this week’s emotion rally.
Daily price action will be more a function of weather moving forward. Chicago-based research company AgResource stays bullish on long-term outlook of agricultural futures.
U.S. Department of Agriculture (USDA) announced China secured another two cargoes of U.S. soybeans for old crop delivery, and daily sales will be a common feature well into early summer amid rising Brazilian FOB basis levels. The entirety of global soybean demand will be funneled to the United States in late summer.
U.S. weather issues will be needed to sustain speculative buying in the very near term. AgResource continues to suggest that weakness will hinge only upon periodic profit taking. Extreme U.S. and global supply tightness will extend beyond 2021-2022 and 2022-2023.
Weather forecast for Europe maintains better rainfall chances in eastern France and Germany in the 6-10 day period, but this moisture will largely miss wheat-heavy regions for Northwest France. World wheat price discovery over the next 10 days will largely be a function of European weather.
Favorable warmth and dryness will be ongoing in most areas in the United States into the end of next week. Heavy showers are possible in the Eastern Midwest from next Thursday to Friday. Overall, an abnormally large portion of the U.S. corn and soybean crops will be planted in late May, with early June seeding likely across the Northern Plains and far Upper Midwest.