Market update week 42
Rising corn yields in the U.S. and improving weather conditions, with less drought in Brazil, are driving down corn prices in Chicago. Meanwhile, soybean planting is underway but has already experienced considerable delays. Typically, there are about 115 days between soybean and corn planting in Mato Grosso, which accounts for 40% of safrinha corn. Given the current pace of soybean planting, it’s unlikely that safrinha corn planting will begin before February 1, whereas last year, planting began on January 20.
Rising corn yields in the U.S. and improving weather conditions, with less drought in Brazil, are driving down corn prices in Chicago. Meanwhile, soybean planting is underway but has already experienced considerable delays. Typically, there are about 115 days between soybean and corn planting in Mato Grosso, which accounts for 40% of safrinha corn. Given the current pace of soybean planting, it’s unlikely that safrinha corn planting will begin before February 1, whereas last year, planting began on January 20.
Cereal and oilseed prices continue to decline. On the climate side, favorable rains for wheat planting in Russia and soybean and corn planting in South America are bringing some ease. On the geopolitical and macroeconomic front, the easing of concerns over potential Israeli strikes on Iranian oil facilities is providing relief to oil markets. The drop in oil prices, along with declines in soybean prices, is leading to a broader correction in vegetable oil and rapeseed markets.
Cereal and oilseed prices continue to decline. On the climate side, favorable rains for wheat planting in Russia and soybean and corn planting in South America are bringing some ease. On the geopolitical and macroeconomic front, the easing of concerns over potential Israeli strikes on Iranian oil facilities is providing relief to oil markets. The drop in oil prices, along with declines in soybean prices, is leading to a broader correction in vegetable oil and rapeseed markets.
Dry weather across the Corn Belt is aiding the U.S. harvest, and the USDA Crop Progress report from last night confirms significant progress. The U.S. corn harvest is now 47% complete, up from 30% the previous week and surpassing the expected 44% completion rate. The 6-year average of 39% harvested at this point has been comfortably exceeded.
Dry weather across the Corn Belt is aiding the U.S. harvest, and the USDA Crop Progress report from last night confirms significant progress. The U.S. corn harvest is now 47% complete, up from 30% the previous week and surpassing the expected 44% completion rate. The 6-year average of 39% harvested at this point has been comfortably exceeded.