Grains Lower After Long Weekend
May 27, 2014
The grains traded lower in the night session following the long Memorial Day weekend. Corn is down 5 ¾ cents, Soybeans is down 11 ¾ cents and Chicago Wheat is down 9 cents going into the morning pause in trade. The USDA will be delivering the crop progress and the grain inspections report today which was delayed from its normal Monday release in observance of Memorial Day.
Chicago wheat is down in the overnight session falling below its 100 day moving average following moisture in the plains and a successful presidential election in Ukraine. Rainfall in the moisture deficient parts of the plains spurred on selling despite the fact that coverage was below expectations in some of the driest parts of central and southern Kansas. Texas got the better part of the deal over the weekend receiving 1-3 inches.
The Ukrainian presidential election held over the weekend resulted in an overwhelming win for the 48 year old billionaire Petro Poroshenko. Following the election Ukrainian forces mounted a strong offensive against the Rebels in the east that resulted in more than 50 pro-Russian casualties and no government casualties. With Petro Poroshenko winning more than 54% of votes compared to the 13% received by his closest challenger it would appear that a single voice of Ukraine has been elected. This could be the start to a resolution, barring any major Russian intervention.
Moisture across ND today should move toward the central and eastern parts of the Midwest opening up another planting window for the next couple days for the northern states. The next significant planting delays should arrive between Friday and Tuesday throughout ND and MN.
Soybeans are down sharply this morning, with another 300,000 tonnes of soybeans sold from China’s state reserves. The government sold 81.5 percent of soybeans offered, slightly higher than last week’s. The soybeans were sold for an average price of $660 per tonne. The Chinese government is scheduled to auction off 3.5 million tonnes of corn from its state reserves on the 29th.