May 7: Grain Prices Plunge Across the Board in Chicago

Monday was a brutal day across the board in Chicago. Grain traders sold off across all major crop categories. Profit-taking combined with weather reports fueled a sell-off…

So too did chatter about Thursday’s WASDE report. Let’s take a dive into grain prices in Chicago on Monday. Then, we’ll give you a few updates on crop progress and quality.

Let’s get started…

Soybean Prices Plunge Ahead of WASDE Report

July soybean prices slumped 25.25 cents to close the day at $10.115 per bushel.

The August contract shed 25.25 cents to end the day just under $10.15 per bushel.

The price slump came in line with a big drop in soy oil prices.

This morning, the USDA reported soybean shipments of 533,667 MT for the week ending May 3. That was a 23% drop from the previous week.

However, it beat last year’s same period by 44%.

This afternoon, the USDA reported weekly planting of the U.S. soybean crop. The agency reported progress at 15%, a figure that was 10 points higher than last week’s report.

The chart below provides a glimpse of soybean planting progress in the top 10 U.S. producing states.

Wheat Prices Fall Across U.S. Exchanges

It was a tough day for wheat prices in Chicago and Kansas City. July SRW wheat prices fell 14.75 cents to end the day at $5.115 per bushel. The September contract fell 13 cents to end the day a tick under 5.29.

In Kansas City, prices fared even worse. The July HRW contract shed 16.25 to end the day at $5.395. The September contract shed 15.5 cents to end the day a tick above $5.58 per bushel.

The USDA reported export inspections earlier this morning. The agency said that inspections came in at 327,662 MT. That figure for the week ending May 3 came in about 50% lower than the same period in 2017. It was also off 17% from the previous week.

Today, the USDA also reported crop conditions across the United States. The agency said that 33% of the U.S. crop is now headed. The report also said that conditions improved by 1 percentage point to hit 34% “good-to-excellent.”

The chart below provides a glimpse of crop conditions across our top producing states.

Minneapolis Spring Wheat contracts shed 12 cents to end the day at $6.11. The September 2018 contract shed 10.75 cents to end the day a tick above $6.18 per bushel.

That came ahead of the NASS report, which indicated that 30% of the spring wheat crop is now planted. That figure is 21 points behind the five-year average.

Corn Prices Falter Yet Again

July 2018 corn contracts shed 5.5 cents to end the day a tick under $4.01.

The September contract fell 5.25 cents to end the day at $4.085.

Today the USDA reported weekly shipments of American corn. The agency said that inspections totaled 1.916 MMT. That figure was about a 29% jump from the previous week. It was also double last year’s inspections during the same period.

Farmers made a lot of progress in planting from last week. The NASS said that 39% of the American crop has been planted. That was a 22-percentage point jump from last week.

Farmers took great advantage of last week’s improved weather. The chart below provides a glimpse of the current state of U.S. corn planting.

They are now just 5 percentage points back of the five-year average. With good weather reports in the coming days, we can expect to see similar gains in the next few days.

Get More Information on Grain Prices

Looking for daily content on the U.S. and Canadian grain markets?

Be sure to sign up the daily Breakfast Brief. Each morning, FarmLead President and CEO Brennan Turner offers readers inside the numbers to break down what is moving grain prices across the continent.

We’re not just talking exchanges in Chicago and Winnipeg.

We’re talking about local prices on some commodities with limited price transparency and liquidity all across the continent. If you’re growing flax, lentils, oats, and more, we’ve got you covered.

Sign up for the Breakfast Brief right here. 

It’s free and delivered to your inbox every morning.

About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

Most Recent Posts
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.
Pea Prices in 2020 Diverge as Farmers Look Up and Abroad
January 14, 2020 Brennan Turner
Pea prices are starting 2020 out on a bit of a divergent path, at least within the complex, as yellow pea prices drag lower while green pea prices soar.