Morning Markets: Corn: -5.50 old & -5 new.
Beans: -6.50 old & -7.25 new. Wheat: -2.50 old & new.
Topflight Grain is offering Free DP on soybeans to all full-time locations except Maroa based on space availability good through August 31, 2026.
We are also offering Free DP on corn delivered to Pierson and Milmine based on space availability good through August 31, 2026.
MARKET SUMMARY:
Good morning. Ag futures markets at the Board of Trade are quietly mixed/lower this morning, with the space seeing a notable lack of volume and narrow trading ranges following what has been an active few days going back to last week. Sagging energy markets are likely to keep the upside somewhat limited throughout the day on Wednesday, but as we've discussed in depth going back to Friday, day-to-day price direction right now is all about China headlines and whether or not there is any evidence of a new ag purchase program. So far today, that evidence continues to be absent.
Corn futures to start Wednesday morning are trading 3-4 cents lower, soybean futures are trading 4-6 cents lower, and the Chicago wheat market is trading unchanged to a penny higher.
Crude Oil is down $3.12 at $101.03
US Dollar is up at $99.34
Dow futures are up 217 points at 49,676
WEATHER:
- Weather models this morning remain in good agreement on rainfall the rest of the week focusing on the southern and southeastern parts of the US, while high pressure aloft over the Hudson Bay and eastern part of Canada keeps the northern and northeastern parts of the US on the drier side. The EU model this morning has totals through the end of the week now in a range of a tenth or two to around an inch, with some bands of heavier precip possible along the Ohio River and through parts of TX and the Gulf in the south.
- Precip expands north through the weekend and into next week though, with 10-day maps this morning showing rainfall accumulation of at least an inch for most all areas of the US besides the West Coast and the southwest, and a pocket through MN/WI and the northern parts of IA and IL. If there is a threat in the forecast today, it is too much moisture through parts of the southern Corn Belt in the short term, but soil moisture maps would say the moisture is far from a bad thing.
OTHER HEADLINES:
- This morning's weekly ethanol update from the EIA, with data for the week ending May 15th, is expected to show average daily production across the US in the week between 1.032-1.110 mil bbls, while stocks in the week are estimated between 25.10-25.47 mil bbls. On average, the production figure would be down from last week, but stocks would be higher.
- Though there was no mention of ag products, China's Commerce Ministry on Wednesday did confirm Beijing's plans to purchase 200 Boeing jets from the US, as well as the resumption of poultry imports from certain US states and the reinstatement of qualified US beef exporter registration for more than 400 companies. The confirmations highlight progress, but are broadly old news at this point and still do not today represent actual product being shipped.
- The Commerce Ministry also confirmed in a statement that the two sides had agreed to cut tariffs on agricultural trade as part of a broader deal, though there were still few if any details regarding products, timing, or implementation. Notably, the statement did not mention the $17 billion commitment pushed by the US side, while comments in general were broadly similar to those issued at the conclusion of the meetings on Saturday.
- Following preliminary reports earlier in the month, China's customs administration on Wednesday reported the country's imports of US beans in the month of April more than doubled from the same month a year ago, as purchases made as part of the 12 MMT Bussan agreement last fall shipped and arrived at port. China's total imports in the month were seen at 8.48 MMTs, which is up some 40% from last year, but Brazil accounted for more than half of this. Cumulatively through April, Chinese imports of US beans are down nearly 50% from the same period last year at just 6.7 MMTs, while imports from Brazil at 12.7 MMTs are up nearly 40%.
- Though not necessarily market moving today, Indonesia's government announced on Wednesday, via a fiery speech from the country's President to parliament, that it would be centralizing exports of key commodities as part of a broader effort to boost state revenues and tighten it's grip on the country's abundant natural resources. President Subianto said Indonesia had lost nearly a trillion dollars in revenue over the last 30+ years due to it's commodities being sold too cheaply.
- Bloomberg reported on Tuesday that trade negotiators from the EU had finalized verbiage surrounding it's now long delayed trade deal with the US following months of negotiations, seemingly clearing the path for the deal to be ratified before Trump's tariff increase deadline hits on July 4th. As part of the agreement, the EU would drop tariffs on US industrial products in exchange for US tariffs on imports from the bloc staying at 15% vs the threatened 25%. The European parliament meets on June 16th, which is when the deal is expected to be ratified.
EXPORT NEWS:
- N/A
Be careful!
Bailey Runyen
Grain Originator | Topflight Grain Coop.
101 N. Main St. | Cisco, IL 61830
Phone :: 217-669-2141
Email :: brunyen@tfgrain.com
