Grains-Corn Stays Firm on Weather Risks to U.S. Planting

(Agriculture.com) – Chicago corn futures edged higher on Thursday as the risk of floods disrupting planting and damaging grain stocks in the U.S. Midwest continued to underpin the market. Soybeans also ticked higher, supported by optimism about a resolution to a U.S.-China trade tariff war. Wheat rose, with spring wheat futures steadying after a five-session slide linked to easing weather concerns in the northern U.S. Plains.

On the demand side, weekly U.S. corn export sales published by the U.S. Department of Agriculture were below a range of trade estimates. Wheat and soybean exports topped expectations, with the soybean volume dominated by recent big purchases by China. The Chicago Board of Trade (CBOT) most-active corn contract had added 0.3 percent to $3.64 a bushel by the end of the overnight session. “There is some support for the corn market because of planting delays in the U.S. Midwest and damage to stocks from the previous crop which was in storage,” said Phin Ziebell, an agribusiness economist at National Australia Bank. “U.S.-China trade talks seem to be progressing well which is positive for beans.”

Concerns about planting delays in the U.S. Midwest are providing support to corn, with expectations that farmers could switch some acreage towards later-planted soybeans. Rain forecast in the week ahead could keep fields in parts of the Midwest soggy after last month’s flooding. “Current forecasts showing warmth and potential above-average rainfall through early April in the Midwestern U.S. raise further concerns for sowing delays,” Refinitiv Agriculture Research analysts said. However, corn planting in the southern United States was running ahead of the usual pace, they added. The uncertainty surrounding planting conditions has offset pressure from large domestic inventories.

CBOT soybeans were up 0.3 percent at $9.01-3/4 a bushel. U.S.-Chinese trade talks made “good headway” last week in Beijing and both sides aim to bridge differences during talks that could extend beyond three days this week, White House economic adviser Larry Kudlow said. As the most valuable U.S. agricultural export to China, soybeans have been a focal point of the tariff dispute. The latest purchases of U.S. soybeans by China as part of the countries’ negotiating true helped boost weekly U.S. export sales, the data published by the U.S. Department of Agriculture showed. CBOT wheat added 0.6 percent to $4.74 a bushel.

MGEX spring wheat was up 1.0 percent at $5.40-3/4, after hitting its lowest since mid-July on Wednesday. Prices at 1249 GMT Last Change Pct End 2018 Ytd Pct Move Move CBOT wheat 474.00 3.00 0.64 503.25 -5.81 CBOT corn 364.00 1.25 0.34 375.00 -2.93 CBOT soy 901.75 3.00 0.33 895.00 0.75 Paris wheat May 190.00 1.50 0.80 205.00 -7.32 Paris maize Jun 169.50 0.50 0.30 184.50 -8.13 Paris rape May 361.50 0.00 0.00 365.25 -1.03 WTI crude oil 62.64 0.18 0.29 45.41 37.94 Euro/dlr 1.12 0.00 -0.19 1.1469 -2.23 Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.