Weekly Sales on Par With Expectations
USDA’s weekly export sales tally sheet this morning showed volumes inline to slightly higher than expectations.
CIF corn values from the U.S. into key Asian markets are still tracking above CIF delivered values from South America, making it challenging for the U.S. to see sizable export business.
For beans, Argentina has normalized their bean crop after last year’s drought loss which has led to more competition. At this stage, buyers of U.S. beans are limited to Japan, South Korea and Mexico which doesn’t move the needle much for U.S. sales volumes.
What It Means for the U.S. Farmer: Well-supplied world competitors and a strong U.S. dollar continue to be significant impediments for the U.S. grain export program. In turn, that makes price rallies few and far between as U.S. values can’t disconnect from world values.
Summer Weather Outlook Mixed
U.S. weather forecaster CPC put out their May-July weather outlook this morning. Temperatures are pegged to be higher than normal in the ECB but the Plains amd WCB are likely on par with normal. Meanwhile precipitation should continue to be above normal.
What It Means for the U.S. Farmer: Hints of a drought are hard to find this season, so it will be a challenge for the market to get excited about too wet conditions this growing season.
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