On Chicago, corn prices gained more than 2% yesterday, closing at multiyear highs above $6 per bushel.
Nearby soybean contracts are also getting tantalizingly close to $15 pe bushel after rising another 1.5% higher.
Wheat contracts picked up between 1% and 1.5%.
As skittish investors worried about economic recovery amid a global rise in coronavirus cases, energy prices, shifted lower, with crude oil dropping 1.25%.
Gasoline dropped nearly 1.5%
Diesel down around 1%.
Meantime, on Wall St., also the Dow tumbled 256 points lower to 33,821.
In fact, travel restrictions coming into play globally again saw Hong Kong add travel bans yesterday and the US discourage travel to even more countries.
Though not outright banning travel, guidelines were updated to cover some 80pc of the world.
On the political hand, the Russian Ministry of Foreign Affairs on Friday announced that several members of President Joe Biden’s Cabinet were banned from entering Russia in retaliation for recent U.S. sanctions levied on the nation and the expulsion of 10 Russian diplomats in retaliation for what the White House says is the Kremlin’s U.S. election interference, a massive cyber-attack and other hostile activity.
Moscow’s military presence at Ukraine’s borders is projected to “reach 56 battalion tactical groups with 110,000 troops,” testified Ukraine Defense Minister Andrii Taran before the European Parliament’s Security and Defense Subcommittee.
Meantime, chinese President Xi Jinping yesterday called for more equitable management of global affairs and, in an implicit rejection of U.S. dominance.
He said governments shouldn’t impose rules on others.
Xi’s speech at an economic forum comes amid rising tension with China’s neighbors and Washington.
Consequently, the U.S. Dollar weakened more.
Coming back on grains market, corn prices jumped significantly higher on a round of technical buying largely spurred by wintery weather moving its way across the Midwest that should dramatically slow the pace of planting in many areas this week.
Soybean prices followed corn higher as wintery weather put a stop to fieldwork in many areas.
Wheat prices supported by spillover strength from corn and soybeans, along with widespread weather disruptions.
Rain and snow will keep farmers out of the field, until on April 25.
Meantime USDA reported Monday afternoon that corn planting progress has reached 8% through April 18, which was up from the prior week’s tally of 4% but a point below the average trade guess of 9%.
Seven of the top 18 production states have at least made double-digit progress so far, led by Texas (60%).
Emergence is at 2%.
USDA reported Monday afternoon that 3% of the soybean crop has been planted through Sunday, which is in line with analyst expectations and ahead of the prior five-year average of 2%.
Mississippi (15%), Arkansas (12%) and Louisiana (10%) have made the most progress among the top 18 production states so far.
Spring wheat planting progress moved from 11% a week ago up to 19%, besting the average trade guess of 17% and moving further ahead of the prior five-year average of 12%.
Washington leads the pack among the top six production states, with 71% completion, followed by South Dakota (46%) and Idaho (46%).
For winter wheat, 10% of the 2020/21 crop is headed.
That’s up from 5% a week ago but below the prior five-year average of 14%.
Only seven of the top 18 production states have made measurable forays into this category so far, led by Texas (41%).
Quality ratings for winter wheat held steady, with 53% of the crop rated in good-to-excellent condition.
Analysts expected USDA to dock quality a point, in contrast.
Another 30% was rated fair, with the remaining 17% rated poor or very poor – all unchanged from last week.
Statistics Canada is et to release its crop planting intentions report next April 27.
Ahead of that report, analysts expect the agency to show all wheat plantings at 23.7 million acres, down more than a million acres from last year, if realized.
Some of those acres will go into increased plantings of corn, barley and canola, according to the batch of trade guesses.
South American Crop Consultant Dr. Michael Cordonnier cut his Brazilian corn crop projection, and his bias is lower going forward based on dry weather.
Besides crop lateness and the dry pattern, Cordonnier says farmers are also worried about an aggressive new corn pest.
Also Rabobank yesterday trimmed its Brazilian corn crop projection and it hiked its bean crop forecast.
Cordonnier, in contrast, maintained his Brazilian soybean crop projection of 133 MMT, and his bias is neutral to slightly higher going forward.
Brazil has agreed to suspend tariffs on corn, bean, and meal imports from non-Mercosur origins, in a bid to tamp down prices in the domestic market .
The plan is set to take effect next week and hold through the end of 2021.
Discussion about the potential import demands from this change has seen increases in mid-year buying interest reported from other destinations.
On European market, prices soared in an increasingly proven context of climatic risks on spring crops in the USA (soybeans and corn).
Fears about the French harvest are also present, admittedly after the frost episode at the beginning of April, but mainly now about a water deficit which could last over the spring.
French purchases of Romanian wheat motivated more a good increase in European prices.
France has notably contracted a Romanian wheat boat (45 kt), expected for delivery at the end of April, probably in the port of Rouen or Dunkirk.
European rapeseed jumped after news of a Canadian purchase of Ukrainian rapeseed, for August delivery.
In this context, all european grain prices rose, and volatility is on the rise.
From Black Sea basin the world’s largest producer and exporter of sunflower oil, Ukraine, will limit its exports until the end of the current season.
Indeed, yesterday, the Ministry of the Economy and Ukroliyaprom, the association of crushers, agreed on the maximum volume of sunflower oil exports for the 2020/21 MY season at 5.38 Mt against 6.9 Mt last season.
During the first 7 months of the campaign, Ukraine has already exported 3.5 Mt, or 2/3 of the limit volume.
Russian wheat exports reached 278.9 million bushels in January and February, per the latest customs data.
That’s more than double year-over-year results of 136.0 million bushels during the first two months of 2020.
Russia is the world’s No. 1 wheat exporter.
China imported 7.18 MMT of soybeans from the U.S. during March, a 320% surge from shipments the year prior, according to Chinese customs data released on last Monday.
This came as rain and late crop development slowed the start of Brazil’s shipping season.
China, continue to be a key player in the markets, showing a significant appetite for its import needs, maybe also for French origin in wheat and barley for the next season.
Aussie local markets were a touch firmer yesterday only for new crop.
Old crop volume, indeed, picked up slightly as exporters looked to cover some front end demand.
New crop wheat and barley bids were up $3-4/t.
WA canola was bid $725/t.
Weather maps were holding dry with no substantial changes, but extended runs are pulling back slightly on the rainfall chances for WA into next week.
On the international scene, Mexico yesterday bought 114,300 t of corn.
Japan is looking to purchase 3.1 million bushels of food-quality wheat from the United States and Canada in a regular tender that closes later this week.
Of the total, 70% is expected to be sourced from the U.S..
As May futures expiry is approaching, we’ll shift futures moves quotations to the July contract at the start of next week.
Tonight we will see how the session will close.
