Chicago Close: Corn, Soys Ease on Good Weather

Corn and soybean futures both ended lower on Thursday, undermined by decent conditions for newly seeded crops in the American Midwest.

Although the heart of the Corn Belt was seeing cool, cloudy conditions today, the 6- to 10-day outlook calls for the likelihood of near- or above-normal temperatures for almost the entire country, Additionally, skies have cleared over the Great Lakes region, although widespread flooding continues from northern and central Illinois into Michigan, as well as parts of Ohio.

Corn was further pressured by slightly disappointing weekly export sales, reported this morning by the USDA at 33.652 million bu for the week ended May 14. That came via 34.8 million bu of old crop corn bookings and 1.2 million of net reductions in new-crop sales. July corn lost 1 ¾ cents to $3.17 ¾ and December fell a penny to $3.33.

Soybean export sales were strong, but nervousness about future Chinese purchases added to the pressure from the weather. USDA data showed 1.2 million tonnes of old crop soybeans were sold during the week ending May 14. That was up 99% week over week and above the average trade estimate. New-crop sales added 464,000 tonnes to the total for a 29-week high in combined soybean bookings. July soybeans fell 11 ¾ cents to $8.35 and November was down 8 ½ cents at $8.45 ½.

Wheat ended mixed, with winter wheat contracts higher and spring wheat lower. Day two of the Kansas Virtual Wheat tour forecasted winter wheat yields in the state anywhere from 32.9 bu/acre to 51.7 bu, with dryness the main factor in the lower estimates. Old-crop wheat export bookings for the week ending May 14 were 175,815 tonnes, down 13.4% from a week earlier but up sharply from the same week last year. July Chicago wheat was 2 ¼ cents higher at $5.16, July Kansas City gained 1 ¼ cents to $4.54 ½ and July Minneapolis was down 2 ½ cents at $5.18.

Live cattle were higher today while lean hogs were mainly higher.

Source: DePutter Publishing Ltd.

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