Weather has become the main driver in the grain as the market flip flops with every change in the forecast. It seems ridiculous that the market switches direction with every updated forecast, but that is also a sign of how volatile the marketplace really is.
As of the end of the first week of June the one-to-five-day forecast was calling for above normal temps and below normal precipitation with only popcorn type summer thunderstorms expected. The six-to-10-day forecast is expected to bring cooler temps and average precipitation for the Corn Belt. The 11-to-15-day forecast is calling from the return of above normal temps and below normal precipitation for the north but average precipitation for Corn Belt.
The National Weather Service is calling for June to experience above normal temperatures and below average precipitation.
The grains did not get any help from reports of increased imports into the U.S. The U.S. is importing 240,000 metric tons of wheat from Germany and Poland and 180,000 metric tons of soybeans from Brazil.
Three private market analysts put out updated corn production estimates for Brazil.
AgRural is estimating corn production at 127.4 million metric tons versus 125.1 million metric tons previously. Safras and Mercado are estimating production at 136.9 million metric tons. AgResources Brazil is estimating the crop at 127.45 million metric tons versus 126.08 million metric tons previously.
This week’s Crop Progress report verified what has been talked about for the past month, drought concerns are increasing.
The report was expected to show declining crop ratings, but most were lower than expected. And there was a slowdown in planting progress. It is interesting that in the last full week of May, North Dakota was able to plant 31% of its principal crops, which amounted to 7.165 million acres, roughly 30% to 40% of every major crop produced in the state. But last week, producers were only able to plant 17% of those principal acres, or roughly half the pace of the previous week. In reality, over 40% to 60% of ND’s crop was planted in the past two weeks.
Source: agweek.com
Photo Credit: istock-primeimages
Categories: North Dakota, Business