May 31 – Grain Prices Rebound after Two-day Sell-off

Good Morning!

Grain prices this morning are mostly in the green as the market starts to rebound from this week’s two-day sell-off.

“In order to carry a positive action we must develop here a positive vision.” – Dalai Lama (Spiritual Leader)

graincents-trial

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. [1]

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).

To growth,

Brennan Turner

President | CEO
FarmLead
TF: 1-855-332-7653
contact@FarmLead.com
@FarmLead or @GrainCents on Twitter

At 7:00 AM CST in the North American futures markets (*not cash prices*):
(all prices in dollars per bushel unless otherwise indicated)
$1 USD = $1.2834 
CAD, $1 CAD = $0.7792 USD)

Jul Corn: 2.8¢ (0.71%) to $3.963 USD or $5.086 CAD
Jul Soybeans: 1.3¢ (0.13%) to $10.243 USD or $13.146 CAD
Jul Soybean Meal (per short ton): unchanged to $376.90 USD or $483.72 CAD
Jul Soybean Oil (cents per lbs): 0.05¢ (0.02%) at 31.53¢ USD or 40.47¢ CAD  
Jul Oats: $0.10 (0.42%) to $2.398 USD or $3.078 CAD
Jul Wheat (Chicago): -1.0¢ (-0.19%) to $5.210 USD or $6.687 CAD
Jul Wheat (Kansas City): -1.5¢ (-0.28%) to $5.395 USD or $6.924 CAD
Jul Wheat (Minneapolis): -2.8¢ (-0.45%) to $6.160 USD or $7.906 CAD
Jul Canola: -$1.50 (-0.28%) to $12.163/bu / $536.23/MT CAD or $9.374/bu / $413.31/MT USD

COMMODITY TRADING INVOLVES RISK AND MAY NOT BE SUITABLE FOR ALL RECIPIENTS OF THIS POST. Neither the information presented, nor any opinions expressed, constitutes a solicitation for the purchase or sale of any commodities. The thoughts expressed in this email and basic data from which they are derived are believed to be reliable, but cannot be guaranteed due to uncertainty about future events and complexities surrounding commodity markets. Those acting on the information are responsible for their own actions.

About the Author
Brennan Turner

Brennan Turner is the CEO of FarmLead.com, North America’s Grain Marketplace. He holds a degree in economics from Yale University and spent time on Wall Street in commodity trade and analysis before starting FarmLead. In 2017, Brennan was named to Fast Company’s List of Most Creative People in Business and, in 2018, a Henry Crown Fellow. He is originally from Foam Lake, Saskatchewan where his family started farming the land nearly 100 years ago (and still do to this day!). Brennan's unique grain markets analysis can be found in everything from small-town print newspapers to large media outlets such as Bloomberg and Reuters.

Most Recent Posts
Dec. 14 – Soybean Prices Remember Supply, Competition, Trade War
December 14, 2018 Brennan Turner
Grain markets are lower as the complex follows yesterday’s selling, soybean prices failed to find support after the big splash by China.
October 4: Corn Prices Edge Higher With October WASDE in Focus
October 04, 2018 Garrett Baldwin
Corn prices ticked higher Thursday as traders and analysts began to speculate on next week’s release of the October WASDE report.