Grain prices this morning are mostly in the green as the market starts to rebound from this week’s two-day sell-off.
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Grain Prices Rebound after Two-day Sell-off
Grain prices this morning are mostly in the green as the complex starts to rebound from this week’s two-day sell-off. Thanks to some early morning travel, this morning’s Breakfast Brief will be a bit shorter and in a slightly different format.
As Garrett discussed in yesterday’s Grain Markets Today column, wheat prices took a bit of a nosedive as profit-taking was accelerating by improving weather prospects. Winter wheat prices lost about 15 cents in both Chicago and Kansas City, while spring wheat prices on the futures board in Minneapolis dropped 16.5 cents. Spring wheat prices are still sitting above $6 USD /bushel though!
Corn prices fell thanks to the solid start to the growing season, as mentioned in yesterday’s Breakfast Brief which reported on the weekly USDA crop progress report. Weather in a couple of provinces that have been drying out, Manitoba and Saskatchewan, trended a bit wetter yesterday. There also looks to be more thunderstorms through the weekend across the Canadian Prairies. In the East, 90% of Ontario corn and about 70% of soybeans have now been seeded. 
Soybean prices continued to pull back with ongoing uncertainty around what sort of trade deal might come out of Beijing this week with US Secretary of Commerce, Wilbur Ross, there.
For our GrainCents readers, we recently dug into how the Chinese market for food-grade soybeans is evolving. We also looked yesterday at why Ethiopia is an interesting market for peas, lentils, and especially chickpeas. Given some of the elevated geopolitical risk and better weather conditions, watch your email for GrainCents sales recommendation updates over the next week.
In Brazil, the Real continues to trend lower against the US Dollar, thanks to the truck driver strike down there. With the strike ongoing, Brazilian cash grain sales stalled; after all, with no trucks to move grain, why sell? The strike has now stopped as a deal has been signed, but even so, farmers in Brazil are waiting for better premiums to increase their sales of soybeans that they just harvested a few months ago.
Side note: on the FarmLead Marketplace, it doesn’t matter if you’re making spot grain sales, movement over June/July before Harvest 2018 starts, or even new crop 2018/19 sales. Also, you can post grain for sale under many different types of offers:
• A straight cash deal;
• A basis only (and price the futures later);
• A firm offer (this is like a target with the entire market and becoming a popular option);
• A delivered deal to a city/town you’re normally selling into; and,
• An offer with no price on it (show the amount of grain you’re looking to sell).