Turn-around Tuesday on Wednesday.
Grain futures stabilized overnight after yesterday’s last day of the month, heavy liquidation on the renewed story of Pres. Putin’s ongoing conversation of allowing grain exports out of Ukraine providing sanctions against Russia are lifted. Putin continues to press that he’s not the bad guy for the soaring world food values and that, in fact, it is NATO and its sanctions against Russia that are creating it. Russia plans to meet with Turkey on June 8 to discuss clearing the Ukrainian port of mines. Ukraine is concerned that Russia is allowing this in order to make an amphibious attack on Ukraine from the south.
After yesterday’s significant downward price movement in wheat prices, Egypt tendered to secure wheat for mid-late summer. All origins will be considered, but it’s anticipated that either the EU or Russian FOB prices of near $430-440/MT will be the rough benchmark of where Egypt’s tender results will be. It’s anticipated that shortly after Egypt tenders, other purchases will follow from wheat importers out of North Africa and the Mid-East.
Yesterday’s crop progress data mainly was neutral on the numbers for corn at the anticipated 85% planting progress. The catch is there are 3 million acres of corn to be planted in ND/MN, and risks grow that normal frost dates will be concerning in just over a week. Spring wheat planting was behind anticipated progress. Preventive plant dates are now past. Also, Manitoba has only completed 40% of its plantings versus a 91% average. Ideal weather is required across the Northern Plains and Southern Canada well into early fall to maximize spring wheat yield potential.
The Central US weather forecast is consistent with yesterday, and it shows active rainfall with below-normal temps over the next 10 days as a broad zonal jet stream flow stays intact. Organize rain will slowly work across the Delta and Midwest into Friday. Next week will be defined by late but lingering rainfall. Cumulative precipitation in the 6-10 day period is projected at .50-2.00 in OK, KS, NE, MO, IL, and KY. High temps next week will be capped in the upper 70s. Southern Saskatchewan and northern ND/MN experience a drier window through June 11.
Cattle futures tumbled yesterday, with even feeder cattle unable to capitalize on the sharply lower feed market. Selling pressure took out nearby support at 131.00 as funds continued liquidating long positions. Cash cattle are called steady to lower for this week, considering that the South may see deals at $135 while the north could see potentially $145. Overall, the cash has been trending lower now in the past two weeks, consistent with seasonal tendencies of prices to decline into June. The retail box beef market closed higher yesterday with choice up 2.12 while select was higher by 2.15. Load count was moderate at 144 loads.