Wheat, soybeans extend gains
Soybeans were higher on commercial and technical buying. U.S. soybean planting remains slower than average, even after good progress in some areas last week. It’s still relatively early in the season, but there’s talk about replanting due to wet weather in parts of the region. Crush demand is strong thanks to solid margins and export demand is good. NOPA’s April member crush was down on the month, due in part to high prices and tight supplies, but it was still the second largest crush for that month on record. Some farmers in Indonesia are reportedly protesting the government’s ban on palm oil exports, citing the impact to income. Sustained demand from China is a question mark because of COVID lockdowns and unloading delays at ports. Soybean meal was mixed, adjusting spreads, and bean oil was up on strong global demand for vegetable oils. Ukraine’s government says sunflower oil exports from May 1st through 9th were 38,800 tons, with sunflower exports were 60,680 tons. Ukraine is the world’s biggest exporter of sunflower oil, but those sales have been stymied by Russia’s invasion.
Corn was mixed, with nearby contracts down and deferred months up on bear spreading. Almost half of the corn crop is planted, behind normal, and with continued mixed progress expected this week. Most of the region will likely see good planting weather, but some areas will receive more rainfall. Dry weather is an issue in central Brazil, likely having a big impact on yield. Other portions of Brazil’s second crop could see a freeze later this week. The U.S. Energy Information Administration’s weekly ethanol production numbers and stocks report is out Wednesday. Ukraine’s government says corn exports from May 1st through 9th were 232,600 tons. Ukraine’s normally a big player on the global corn market, especially with China, but business has been limited by the Russian invasion.
The wheat complex was solidly higher on commercial and technical buying, notching another round of new highs for the move. Wheat was down early but bounced back on demand expectations and domestic crop concerns. The USDA’s winter wheat rating was down last week, largely because of drought in the southern U.S. Plains, and spring wheat planting is slower than average in most of the northern U.S. Plains due to wet, cold weather. India’s government will allow shipments of wheat currently waiting for clearance and as previously reported, will allow exports to Egypt, the world’s biggest buyer of wheat. India’s crop has bit hit hard by a heatwave, pulling production projections well below initial expectations. Ukraine’s government says wheat exports from May 1st through 9th were 8,680 tons. IKAR says Russian wheat prices moved higher last week. The Black Sea wheat trade has been greatly disrupted by Russia’s invasion of Ukraine. Conditions for what has been planted in Ukraine are called mostly favorable. Wet weather is delaying planting in parts of Australia.