Good morning, Farmer Family …
US farm markets continued to bleed on Friday, with corn, soybeans and wheat spill lower for the third consecutive session.
Notably, corn market closed 0.08% lower.
Soybeans fell 0.93%.
Meal prices ended the session 1.24% lower.
Soy oil went into the weekend on triple digit losses, down 1.89%.
Wheat prices followed other grains lower, with Chicago SRW dropping 0.9%.
Kansas City HRW May contract closed 0.06% in the black for the day, but the July contract was still as much as 0.15% weaker.
MGEX spring wheat prices fell 1.02%.
Corn prices ticked lower, with weakness in crude oil and signs of improving planting weather in parts of the U.S. Midwest capping prices.
Traders indeed expect corn planting progress to pick up.
Meantime, they remain watchful for what is likely a record-breaking crop in Brazil.
Soybean prices faced a moderate cut, due partly to the fact that comparatively low Brazilian prices are making U.S. beans uncompetitive, with modest weekly U.S. exports, on slowing demand from top importer China.
Wheat recoverd from early losses, closing with moderate cuts after a two-day slide as participants awaited further developments in talks over Ukrainian exports and monitored forecasts of rain relief in drought-hit parts of the U.S. Plains.
Also, grain markets faced once again uncertainty over exports from Ukraine, despite a resumption of vessel checks under a Black Sea deal and plans by the European Union to allow transit of Ukrainian grain to continue through eastern EU states, while Russia’s foreign minister, will meet the head of the United Nations on Monday to address Moscow’s grievances in relation to the Black Sea grain corridor deal.
For the week, corn prices faded 0.45% in the nearby May contract.
However, there was a little spreading between old and new crop, with December falling 2.14% on the week, to the lowest close since last July.
Soybeans joined the bear crowd during the week, as May slipped 1.13%, with new crop November down 1.25%.
Nearby May meal was 3.05% lower since prior Friday, with soy oil dropping another 0.48% for the week.
As for wheat, all three wheat classes took a tumble during the week, as contracts were down double digits.
Kansas City was the bear leader, with contracts down 4.32% on the week.
MGE spring wheat contracts were next in line, losing 3.34%.
Chicago was down 3.04%.
Going inside the numbers, CBOT soft red winter wheat contract (SRW), was down 20.8 cents on the week, closing at $6.62/bu.
KCBT hard red winter (HRW) was down 38 cents, at $8.41/bu.
MGE hard red spring (HRS) was down 29.2 cents at $8.47/bu.
CBOT corn contract was down 3 cents at$6.63/bu.
CBOT soybean was down 17 cents, at $14.84/bu.
CBOT soymeal was down $14 smt at $445.7/ smt.
CBOT soyoil was down $0.26 at $53.4.
As for basis, corn basis bids remained steady across the central U.S. as farmer sales have been sluggish during the week.
Soybean basis bids also held steady across the central U.S..
As for wheat, basis ended the week down for most classes and export regions as slow export demand provided little insulation for the week’s considerable drop in futures prices.
As the end of the marketing year approaches, markets are softening due to the lack of demand, particularly in the Pacific Northwest (PNW).
Basis was down in the PNW and Gulf for HRS and HRW.
Soft White prices continued to drift downwards in search of demand.
As a result, as of April 20, 2023, FOB prices saw US wheat No 2 Hard Red Winter (HRW) valued at $375/mt (unchanged from prior week).
US wheat No 2 Soft Red Winter (SRW) was valued at $282/mt (unchanged from prior week).
Northern Durum offers from the Great Lakes, for May 2023 delivery were quoted at $10.34/bu ($380.00/MT), unchanged from the prior week.
As for corn, US corn 3YC (Gulf) was at $293/mt (unchanged from prior week).
As for soybean, US soybean 2Y (Gulf) quoted at $565/mt (down $27 from prior week).
USDA reported ethanol prices were mixed within 3 cents of last week from $2.26/gal to $2.43/gal regionally.
Corn oil was 1 to 3 cents higher from 52 to 57 cents/lb regionally.
DDGS were quoted from $235 to $265 regionally this week – mostly weaker within $15/ton of UNCH.
DDGS prices to the Export Point averaged between $272 to $340/ton, unchanged from prior week.
USDA cited the B100 cash price in MN was UNCH at $4.24/gal.
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We wish you a nice day and a good weekend.
Author: Sandro F. Puglisi
