Soybeans close down 20¢ | Monday, June 3, 2024

July corn ended the day down 2¾¢.

July soybeans closed down 20½¢.

CBOT wheat is down 5¾¢. KC wheat is down 8¾¢. Minneapolis wheat is down 6¢.

“Trade had a well-defined risk-off attitude to start the week and this weighed on all markets, including commodities,” says Karl Setzer, partner at Consus Ag Consulting. “Soybeans suffered the greatest losses in response to a weaker Brazilian market and concerns over the slow new crop demand pace we are seeing. Forward contracted soybean sales for the 2024/2025 marketing year are the lowest in 19 years, mainly from an absence of Chinese buying. Sharp losses in the crude complex also weighed on the soy complex, as did expectations for a low April crush in the monthly census report after the close.

“Corn struggled from slowing demand as well, although we did see a flash sale to Spain this morning. The safrinha harvest is 4.7% complete in Brazil, three-times the pace we saw last year. Before long, this corn will be exported, further straining U.S. demand.

“Wheat futures started higher today but corrected as the support from crop loss in Russia was negated by reports of higher production in other regions of the world, mainly Australia. The official Australian crop estimate is up 12% from last year and may go even higher if current weather patterns continue. Progress on Middle East peace talks weighed on all markets as did the lack of a significant weather threat on developing crops.

Setzer continues, “We are starting to see a shift in how trade reacts to weather updates. Rain in the Corn Belt is not seen as much of an issue for corn plantings now that we have caught the five-year average. Some corn acres will go unplanted this year, but trade expects this. Market attention is now focusing on forecasts that would impact the U.S. growing season and crop development, and nothing threatening is predicted. In fact, the U.S. soil moisture is currently the highest in the past four years. The question now is if benign conditions will last into pollination and pod setting as that may be our next best chance of a weather rally.”

Live cattle ended the day up 43¢. Feeder cattle are down 20¢. Lean hogs are down 85¢.

Crude oil is currently down $2.92.

S&P 500 futures are currently down 15 points. Dow futures are down 219 points.

Published: 2:51 p.m. CT

Corn down 5¢ to start the week: 9:25 a.m. CT

July corn is down 5¢ this morning.

July soybeans are down 9¢.

CBOT wheat is down 1½¢. KC wheat is down less than a penny. Minneapolis wheat is down 2¼¢.

“The weekend weather was even wetter than expected,” says Al Kluis, managing director of Kluis Commodity Advisors. “As a result, the last 5% to 10% of the corn and soybean planting will be delayed until the second week of June. This will add another 1 to 2 million acres to the prevent plant column.” 

Today at 3 p.m. CT, USDA is expected to release the weekly Crop Progress report. Kluis says, ”I am watching the first crop conditions report for 2024 for corn, soybeans, and spring wheat in the Crop Progress report this afternoon. The trade is expecting 70% to 72% good-to-excellent ratings. It’s early in the season, but these scores would suggest trend line or better yields are possible at this time.”

Earlier this morning USDA announced Spain is buying 110,000 metric tons of corn for the 2023/2024 marketing year.

Concerning livestock, live cattle are currently down 23¢. Feeder cattle are down 20¢. Lean hogs are up 3¢.

Crude oil is down $1.68.

S&P 500 futures are up 2 points. Dow futures are down 85 points.

Published: 9:25 a.m. CT