- Grain Markets were closed for Independence Day and reopen this morning at 8:30
- Calls are for a higher open, particularly with wheat. the dollar is slightly lower and Crude higher in early trade
- Funds were buyers in corn in Tuesday's shortened trading session.
- It is estimated they bought 11,500 corn contracts and 6,000 wheat.
- Trade between the US and China remains the main focus of ag markets with US tariffs on Chinese goods set to take effect tomorrow
- China’s custom agency has said that China will implement tariffs, to take effect immediately, on US goods and soybeans are likely to be included.
- Euronext wheat futures extended gains on Wednesday to a three-week high as concern that adverse weather will reduce harvest yields and quality in parts of Europe
- German farming association forecasts the German 2018 winter wheat harvest at 20.5 million tonnes, down from 24.1 million tonnes in 2017
Chart of the Day
U.S. corn exports reached an all-time high in April at 7.7 million metric tons. Year-to-date corn shipments through May are estimated at 29 million metric tons, and USDA projections for exports in the 2017/18 crop marketing year (September-August) were raised to 58.4 million metric tons. The previous monthly record for exports was set in November 1989, nearly 30 years ago. Projections for May exports, based on export inspections, are higher than usual at this time of year, suggesting continued strength in the U.S. corn export market. This is due, in part, to continued drought in Argentina, a major corn supplier, reducing export prospects there. Additionally, Brazil is expected to have a poor crop, reflecting dry weather and less area planted for the second cropping season. As a result, importing countries have fewer options for sourcing corn, increasing U.S. competitiveness.