Selling tied to the Brazilian currency was largely completed last week, and US Midwest weather and crop conditions captured the market’s focus at the start of the week. Both old and new crop soybeans were able to build off of Friday’s recovery, with new crop gaining slightly on old crop. Commodity fund traders were estimated buyers of; 3,000 soybean and 1,500 soymeal contracts, while selling 1,500 soyoil.
NASS reported US soy planting progress at 53% complete, versus 56% last year and the 5 year average of 52%. MN is leading the Cornbelt states at 72% completed, while KS and WI are the slowest at 27% and 29% planted. After a slower start to the year, planting is back above average. Emergence on a national basis at 19%, just behind average of 21%, but every Cornbelt state is below the 5 year average. The crop needs heat, yet the forecast is wetter into the weekend, with below normal temps expected for the next week. The Brazilian currency move is done, at least in the near term and the market focus is back on growing crops. We look for firm but choppy trade through into the holiday. A directional trade could follow in early June.
