Grain prices were mixed Tuesday as markets attempted to recover from yesterday’s sharp selloff. Wheat prices and corn prices saw modest gains, while soybean prices ticked slightly lower.
Soybean Prices Retreat Again
July soybean prices dipped 0.5 cents to close the day a tick above $10.01 per bushel. The August contract shed 0.25 cents to close the day at $10.065.
Soybean prices continue to face pressures from USDA data and ongoing trade tensions between the United States and China. The USDA said Monday afternoon that farmers have put 87% of the soybean crop into the ground. The agency also said that 68% of the crop has emerged.
Finally, the agency offered its first grading of the soybean crop. The NASS report showed that 75% of the soybean crop is rated G/E. With weather forecasts indicating favorable growing conditions in the weeks ahead, impatient traders appear willing to let go of their contracts and don’t want to wait for further developments (or lack thereof) in ongoing negotiations between the U.S. and Chinese trade officials.
According to reports, President Trump plans to meet with his trade advisors on Tuesday to discuss an offer from China to purchase another $70 billion in U.S. goods. This list of goods includes a significant amount of U.S. imports.
Corn Gains on Conditions Report
Corn prices found gains on Tuesday. The July corn contract added 3 cents to close just under $3.84. The September contract added 3.25 cents to close at $3.93 per bushel.
The uptick came a day after the USDA crop progress report showed that 97% of the corn crop is in the ground, while 86% of the crop has emerged. However, conditions ratings came in a little lower than expectations. A 1% drop in good-to-excellent grades saw the corn crop sitting at 78% G/E.
Today, the USDA announced that South Korean importers purchased about 13 million bushels (330,000 MT) of U.S. corn.
Wheat Prices Rise on Tuesday
Wheat prices saw gains in Chicago, Minnesota, and Kansas City.
The July SRW contract added 4.75 cents to close at $5.10. The September contract gained 4.75 cents to close at $5.275.
Down in Kansas City, July HRW contracts added 7.5 to end the day at $5.29 per bushel. The September contract added 7.75 cents and ended the day just above $5.48.
Yesterday’s crop progress report showed that 5% of the winter wheat crop has been harvested.
In Minneapolis, the July spring wheat contract gained 3.75 cents to end the day at $5.97. The September spring wheat contract added 3.5 cents to close at $6.06. The gains came after the USDA reported that 70% of the spring wheat crop is rated “G/E”.
Farm Bill Back in Play
Finally, the U.S. Senate is poised to vote on the latest iteration of the Farm Bill by July 4.
Today, Senate Majority Leader Mitch McConnell said that Republicans are looking to revise the nation’s Food Stamp program and recipient work requirements.
Congressman Neal Dunn told reporters today that the new bill would improve the farm safety net and improve crop insurance protection. Congress has also boosted funding for new technology and agriculture research.
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