Grains continued to move higher overnight with Minneapolis wheat adding 12 cents to yesterday’s 25-cent advance.
Spring wheat prices hit a 2 year high as the market braces for cutbacks from key growing areas in the High Plains. Weather forecasts for ND show no real relief in the 14-day period. Minor storms bringing limited rain are expected this coming weekend and again in another 10 days.
For the US, weather looks to be hot for the Central Plains and Midwest with temps 3 to 5C above normal for the next several days. Rainfall is expected in most key growing areas but the WCB rains are expected to be somewhat limited.
In China, the government there approved two new GMO varieties - Dow’s Enlist Corn and Monsanto’s Vistive Gold soybeans. China has dragged its feet on permitting new GMO varieties, generally taking 6 years to approve while other countries are more on par with 3 years. In May, Beijing promised to speed up the evaluations of eight US varieties of GMO crops by the end of the month under a trade deal with the US.
The Fed will make an announcement today on interest rates, with a widely expected quarter-point interest rate hike. This would push the Fed funds target rate above 1% for the first time since 2008. Market participants' focus will be on signals on the frequency of further hikes and how the Fed plans to unwind its huge Treasury bond stockpile over the years ahead.
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