It was certainly risk-on trade in grains today, with new contract highs posted in old and new crop corn, and Minneapolis wheat. The funds are back, buying all of the markets as the mostly dry Brazil corn area forecast, and the cool and dry northern Plains and Canadian forecast, along with a screaming interior basis has propelled markets to sharp gains. May corn closed just inches away from $6.00 as funds are buying. Soybeans and wheat surged, with bean oil sharply higher on word that EU rapeseed crops may have been damaged by cold. Brazil’s southern safrinha corn area is facing two weeks of dryness. Parana’s corn rating is only 76% good compared to the average of 93%.
Wheat will see readings fall very close to damaging levels in portions of the Central and Southern Plains in the next few days as the initial cold surge drops into our nation’s mid-section. Traders are also monitoring extreme drought in the Northern Plains and Canadian Prairies, as well as dryness in portions of Europe, while monitoring talk of a widespread stripe rust problem in China.
It’s another depressing day for the feeder cattle contracts as corn prices are making another run at higher prices. The live cattle contracts traded lower too, but with midday boxed beef prices higher and cash cattle yet to trade, their fate isn’t settled yet this week. Lean hogs pushed higher on strong fundamentals once again.
Farm and Ranch Director Jesse Allen has the closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406