It’s been another boring session at the CME, typical of pre-USDA-report-days.
All Members: Mid-day
Slowing US domestic demand (Avian Flu) and a lack of US export demand is leaving the US grain and soy markets without a bullish demand driver. Some bulls cite the chance of a Brazilian Independent Trucker’s strike, but otherwise prices are sagging at the CBOT with May corn likely to test support at $3.60, May soybeans at $9.50 and May Chi wheat at $4.85 in the trading sessions ahead. Only a change in the US weather forecast to cool/wet can shift the prevailing price trend.
EU and Russian weather patterns/forecasts are much improved with corn being seeded in favorable soil moisture and the forecasts calling for more rain. Most Russia and EU crop watchers tell ARC that the early spring growing season has been nearly ideal and that crops are responding. The forecast is favorable into May 5th and Russian wheat crop estimates are rising.
World grain markets are stable with news lacking direction. The end user sees no reason to extend their forward coverage while US/world farmers are busy planting their spring crops. As more seed goes in the ground, the seasonal pressures will build on farmers to shed stored supply.
Stats Canada will release their April planting survey on Thursday AM. The report is expected to feature expanded wheat, canola and soy acres.