Bloomberg is reporting the Black Sea Corridor will remain open.
Grain futures are lower this morning, with December corn under 5.00 while November soybeans fall below 12.00, as row crop spreads collapse with optimal weather for an early planted crop in the Midwest. The Northern Plains plays catch up and will likely go beyond preventive plant dates and take the discounts on the revenue insurance. The Preventive plant comes with many negative features when carried forward into the next year, and farmers in North Dakota will plant into the opening days of June.
This morning, Bloomberg News is reporting that Turkey will extend the Ukraine Grain Export corridor. No details of the extension of our being offered, and Russia has yet to comment on or confirm corridor extensions that end tomorrow. With the Turkish presidential election being completed on May 28, it’s unlikely the extension will be no longer than 60 days which finishes out the pact that was agreed to last fall.
The US Wheat Quality Crop tour is confirming the NASS low HRW wheat yields and the soaring abandonment. On the first day of the Kansas, wheat yield was 10 BPA lower than last year. Production is estimated to be slightly higher in Colorado in Nebraska, but it’s also forecast that the Kansas City wheat abandonment acres will be rising to cut production by another 30-40 Mil Bu. Abandonment in the West is rumored to be at 20%.
The forecast shows below-normal rainfall for the Canadian Prairies and the Central US, with the best rain of the next two weeks focused on the SW US and the far Southern Plains. Temperatures is set to be variable, with warming in the 9-15 day period across Canada in the Northern Plains, where highs will be in the low 80s to lower 90s. There is no extreme heat, with highs ranging from the 70s to lower 80s throughout the Midwest.
Live cattle were softer on Tuesday, while feeders finished mostly higher. Live cattle futures traded in a narrow range awaiting cash activity, which likely should occur today and consolidates ahead of this Friday’s COF report. Average estimates for the April marketing for Friday afternoon’s report is 90%, placements at 96%, while the May 1 feedlot inventory is pegged at 97% of last year. If realized, the inventory will be up slightly from March but will mark the eighth straight month below a year ago. Yesterday box beef had Choice dropping $2.51, which is now the eighth consecutive day lower, while the Select value was $.36 lower, with the choice/select spread narrowing to $15.12 choice premium.