MarketsFarm – Prices for corn, soybeans and wheat on the Chicago Board of Trade (CBOT) were pressured by fast planting paces during the week ended May 31, according to one trader.
The U.S. Department of Agriculture (USDA) reported on May 30 that 92 per cent of the country’s corn crop was planted as of Sunday, as well as 83 per cent of the soybean crop and 85 per cent of spring wheat. Compared to their respective five-year averages at this time of year, corn and soybeans are eight and 18 points ahead, respectively. Spring wheat is only one point behind despite delayed plantings earlier this spring due to cool and wet weather.
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USDA on Tuesday also released its first corn crop rating of the season, which was at 69 per cent good to excellent.
Ryan Ettner, trader at Allendale Inc. in McHenry, Ill., said the quick seeding is pulling prices down.
“That’s contributed to a good portion (of activity),” he said. “I guess (the corn rating) is in the middle when you look back at the past 20 to 30 years. Those two things combined, and weather maps that put rain for two-thirds of the growing areas, have also done enough to keep moderate pressure, day to day.”
The U.S. House of Representatives was set to vote on raising the country’s debt ceiling on May 31 in order to avoid a catastrophic default. Ettner said while the current negotiations have impacted crude oil prices, agricultural commodities were mostly immune.
“Crude is pre-selling in case (the motion) isn’t passed and there’s an economy slowdown,” he said. “You see the stock market due the same, but not quite at the same level as crude oil.”
Ettner added that low export sales for corn and soybeans are also putting pressure on prices and he expects the USDA to make cuts in its next World Agricultural Supply/Demand Estimates (WASDE) report on June 9. But overall, it is still a weather market.
“As long as the weather maps don’t offer anything too shocking, and they haven’t done so at all this year yet,” he said. “We had a nice bounce last week and then a setback to start this week, but now we should turn to a very slow grind lower.”
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
