Closing Market Update- 6/2/21- Soybeans and Spring Wheat Higher, Corn Lower


Wednesday saw a split day in the grain markets as July soybean oil closed up 2.99 cents, ending near its previous 2021 high of 70.49 cents with support from a lower soybean crush in April and rising diesel prices. Corn prices finished 13 3/4 cents lower, while September Minneapolis wheat was up 12 3/4 cents, both markets being sensitive to the latest forecasts.

Corn turned more cautious with rain falling in the Eastern Corn Belt and increased chances for rain in the 6- to 10-day forecast. Among major corn-producing states, southern Indiana and Ohio have the best rain chances the next seven days, while the rest of the region is limited to light amounts. Starting Thursday, Montana and the Dakotas will see highs in the 90s that spread toward the Great Lakes the next several days and hit triple digits at times. USDA’s 76% good-to-excellent crop rating from Tuesday afternoon is a flattering start but doesn’t say anything meaningful about how this year’s harvest will go. A closer look confirms early problems from a lack of moisture in the Dakotas and in Missouri where 42% of topsoil moisture is considered surplus. USDA said 95% of the corn crop was planted and 87% had emerged, well ahead of the usual schedule.

Meantime, cattle futures rebounded on Wednesday as the market still sorts out the JBS cyberattack impacts. Hogs were lower.

Farm and Ranch Director Jesse Allen has our closing report:

Also, more market analysis from Wednesday with Jesse Allen and Mike Zuzolo of Global Commodity Analytics on Market Talk: