Grains were higher overnight with modest gains supported by a US Dollar falling to its lowest level since the November elections.
Overnight, Egypt’s GASC was in the market tendering for wheat although their most recent request called for higher protein wheat which could restrict access to France. The remainder brought in the lowest offer by the US for $185/MT FOB for HRW.
Yesterday Lanworth came out with their summer weather forecast, which suggests the Eastern part of the grain belt could be prone to drought. They put the odds of this season’s weather to be near normal to hot/dry. They suggest a strong ridge with a “ring of fire” setting up in the middle of the country. This would potentially set the stage for hot/dry to the East while areas to the upper West like IA/MN would see more moisture. The timing of the event is still unclear but the odds seem to favor June rains giving way to July heat and dry conditions which could potentially have a more pronounced impact on beans versus corn.
The US Dollar and stock indices were lower to start the day as the political firestorm over Trump’s dealings with former FBI Director Comey come to the surface. The US Dollar reached its lowest level since the November elections, which is supportive for grain prices.
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