Corn and soybean futures charged strongly higher to end the week, with wheat posting gains as well.
Corn ended higher as SAFRAS and Mercado reduced its estimate of 2020-21 Brazil corn production to 104.14 million tonnes, down a hefty 8.66 million from its previous estimate. In its April supply-demand update, the USDA put the crop at 109 million tonnes. Meanwhile, the five-day outlook calls for anywhere from 1 to 1 ½ inches of rain for the eastern Corn Belt but many already dry areas in the western Corn Belt, including the Dakotas and Minnesota, will mostly miss out. July corn jumped 25 cents to $6.73 ¼ and December added 17 ½ cents to $5.63 ¾.
Tight old-crop fundamentals provided support for soybean futures, as did gains in soyoil. The Buenos Aires Grains Exchange reported Argentine soy harvest progressed about 14 points points in the week ending April 29 to around 33% complete. At the same point last season, the Argentine bean harvest was 68.2% complete. BAGE expects the Argentina soybean crop will be 43 million tonnes, versus the official USDA estimate of 47.5 million tonnes. July beans raced up 32 cents to $15.34 ¼ and November gained 21 cents to $13.39.
Wheat moved higher as the spring wheat crop in the primary production state of North Dakota is expected to remain mostly dry over the next five days. Today’s high temperatures were expected to approach 90°F in eastern Montana and the western Dakotas, further aggravating drought conditions. July Chicago wheat was 5 ¾ cents higher at $7.34 ¾, July Kansas City was up 9 cents at $7.03 ½ and July Minneapolis recorded a 19 ¼-cent gain to $7.63 ¾.
Live cattle and lean hogs both closed higher today.
Source: DePutter Publishing Ltd.
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