Corn starts day up 11¢. Monday, May 22, 2023

Corn is up 11¢ and soybeans are up 19¢ this morning.

CBOT wheat is down a penny. KC wheat is down 8¢. Minneapolis wheat is down 4¢.

“Corn and soybean prices reached oversold territory during last week’s liquidation phase, so a bounce is not a surprise this morning,” says Arlan Suderman, chief commodities economist for StoneX. “Keep in mind that farmers across the Midwest are looking for a bounce that would allow them to catch up with sales. But it’s important to also remember that Brazil farmers are about to harvest a large safrinha corn crop, and that crop is only 30% sold, below the normal pace at this point of 45% – 50% sold. That means that they’re looking for a rally to sell as well. That makes it more difficult to sustain a rally without a bigger story.”

Suderman says there is talk on Twitter this morning about a repeat of the 2012 drought this year. However, he says “forecasts of doom” usually do not come from professional weather forecasters and climatologists he spoke with over the weekend said the atmosphere is continuing to adjust to the anticipated El Nino pattern and much of the Midwest should see more moisture by mid-June.

“They reminded me that warm water episodes – El Nino events – tend to be drier in June before the rains come in July and August,” he says.

The USDA Crop Progress report is expected this afternoon at 3 p.m. CDT. Al Kluis, managing director of Kluis Commodity Advisors, says he is watching to see if emergence will be up to the five-year average for corn and spring wheat.

Earlier this morning USDA announced the sale of 225,000 metric tons of soybean cake and meal for delivery to the Philippines during the 2022/2023 marketing year.

Live cattle are down 43¢. Lean hogs are up 68¢. Feeder cattle are down $1.58.

Crude oil is up 3¢.

S&P 500 futures are up 15 points. Dow futures are up 27 points.

Outside of the U.S., milling wheat is down on the European MATIF trade, and corn and soybeans are up on the Chinese Dalian trade.

Tags: corn, soybeans, wheat, futures, live cattle, feeder cattle, lean hogs