Grain markets finished mixed today with uncertainty regarding the debt feeling, somewhat threatening weather, and a 3-day holiday approaching.
Grain Market News
U.S. Drought Monitor
The monitor shows drought still in place in the plains although this drought area especially in the western and southwestern areas is likely going to be reduced due to the rains in the forecast.
Dryness is expanding in the central U.S. including the central portion of the belt.
Drought Monitor Class Change
This map shows this week’s monitor versus last week.
You can see the improvement in the southwestern plains, anything in green or blue is improving and anything in yellow or tan is where drought has increased.
Just in the last week drought has been increasing in the central U.S. including the central belt.
7-Day Observed Precipitation
This shows very little to no precipitation across most of the U.S. corn and bean belt.
The best rains continue to fall in the southwestern plains, that forecast is expected to continue into next week.
Yesterday’s high temperatures were not extreme but certainly above normal with mid-80s to even low 90s across the heart of the belt.
Today’s radar shows more rain in the southwestern plains and just a few isolated showers in portions of southwest Iowa.
Most of the U.S. corn and bean belt is dry.
7-Day Precipitation Forecast
The forecast shows mostly dry weather, less than a 1/10 of an inch across the bulk of the belt.
Today the forecast did add a little bit of rainfall in the northwestern belt, its still below normal, but generally a 1/4 to 1/2 inch could fall in portions of eastern South Dakota and southern Minnesota.
The 6-10- and 8–14-day continue to indicate above normal temperatures for the majority of the belt.
Dryer in the eastern belt and Great Lakes in both the 6-10 and 8-14 day with above normal precipitation in the southwestern plains.
Grain Market News
Corn: Weekly Export Sales
Corn exports did improve from last week, but they were still a net negative.
This is causing some concern and increasing the probability that USDA will have to lower its corn export forecast.
Soybeans: Weekly Export Sales
Soybeans were up from last week but still disappointing at 115 thousand tons.
This is below the level needed to reach USDA’s forecast but at this time we are on track if we don’t have consistently low reports.
Wheat: Weekly Export Sales
Wheat exports were disappointing but this time of year we typically do see some cancellations at the end of the marketing year.
May Corn Chart
Corn is down in the long term and the intermediate, but the short-term trend has turned up.
Today’s lower trade and lower close did hook the technical indicators which are dead center in the neutral range.
Corn closed at 5.91.
May Soybean Chart
Soybean prices are in a downtrend, the market attempted to challenge or take out the downtrend line the last couple of days.
Today the markets turned around late and made new lows at 11.63 keeping the downtrend intact.
Technical indicators are very oversold, and the weather forecast does look threatening.
Soybeans closed at 13.24.
May KC Wheat Chart
Wheat prices have been extremely volatile with big moves up and down.
We would not be surprised to see whet approach or challenge the $9 level again.
Wheat closed today at 8.18
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