Corn Prices Remain Underpinned by U.S. Planting Delays and Ukraine Grain Unavailable for Export

Corn prices followed wheat prices lower Friday, futures prices fell 0.5%, primarily on planting pressure coupled with grain traders squaring positions ahead of the weekend. Corn prices remain underpinned possible U.S. planting delays and Ukraine grain unavailable for export. Ukraine’s spring plantings are now 98% complete and will drop 25% from a year ago due to the ongoing Russian invasion, per the country’s agriculture ministry. That includes 10.304 million acres of corn.

US Corn Field
Corn Crop

Corn Futures Highlights

  • Corn dipped 0.3% for the week but is up 31% ytd
  • July futures dropped 5 cents to $7.7825 Friday, with September futures down 3.75 cents to $7.4675.
  • Preliminary volume estimates were for 164,515 contracts, fading moderately below Thursday’s final count of 199,730.
  • Corn basis bids were steady to mixed on Friday after firming 2 cents higher at an Indiana ethanol plant and eroding 3 to 17 cents lower at two Midwestern processors today.

Corn Technical Outlook

Corn extended its rally to the highest since 2012 in Chicago to +1/8 and has corrected back to the Tenkan. Major grower and shipper Brazil, the center-west region had a dry April, hampering corn in its final development stages before harvest. U.S crops are just being sown, wet and chilly soils has left the plantings pace at its slowest start since 2013.

Corn Futures Weekly via KnovaWave

“Farmers are in a race against the clock to get their crops in the ground this week, with planting of corn, soybeans and wheat well behind their usual pace. Wet and cool temperatures in key parts of the Midwest have delayed farmers’ planting plans, leaving them days to get crops in the ground before they start to lose out on a bigger harvest. If they don’t, some grain traders say that already high prices for agricultural commodities could rise even more… The U.S. Department of Agriculture said 22% of corn was planted, compared with 50% for the previous-five-year average. For soybeans, 12% was planted, compared with the previous-five-year average of 24%, and 27% of spring wheat was in the ground compared with a typical 47%…”

May 11 – Wall Street Journal (Patrick Thomas and and Kurk Maltais):

Corn Plantings

Ukraine’s spring plantings are now 98% complete and will drop 25% from a year ago due to the ongoing Russian invasion, per the country’s agriculture ministry. That includes 10.304 million acres of corn, 2.292 million acres of spring barley and 466,000 acres of spring wheat.

In France, 98% of the country’s corn crop has been planted through May 16, up from 91% a week ago, per the FranceAgriMer farm office. And 93% is rated in good-to-excellent condition, sliding two points lower week-over-week.

Commodity Round Up

  • Bloomberg Commodities Index declined 1.6% (up 29.4% y-t-d).
  • Spot Gold fell 3.8% to $1,812 (down 1.0%).
  • Silver sank 5.6% to $21.11 (down 9.4%).
  • WTI crude increased 72 cents to $110.49 (up 69%).
  • Gasoline jumped 5.3% (up 78%),
  • Natural Gas fell 4.7% (up 105%).
  • Copper dropped 2.2% (down 7%).
  • Wheat surged 6.2% (up 53%),
  • Corn slipped 0.4% (up 32%).
  • Bitcoin sank $6,300, or 17.4%, this week to $29,800 (down 36%).

Source: TC, USDA, Farm Progress

From The TradersCommunity Research Desk