Soybean Plantings Surge
May 28, 2014
This morning corn and wheat are both trading lower, down 3 cents and 4 cents respectively. Soybeans however has jumped 8 ¼ cents on light overnight volume. Traders should be cautious of soybeans volatility in the last month as it has become quite common to have a sharp loss one day followed by a rebound the next. Yesterday we saw selling pressure as a result of Chinese soybean auctions, but keep in mind the last time we saw selling due to auctions in China the following day ushered in a sharp rebound.
Soybean planting progress surged last week, now 59% complete across the country. The largest gains were seen in the North Dakota, South Dakota, and Minnesota where planting pace is now 31%, 64%, and 49% complete, respectively. Good planting conditions for much of the week helped farmers plant around 30% of the crop in each state, mitigating fears that northern states would struggle getting corn and soybean acres sown. Soybean planting pace is now 3% ahead of the five year average, with emergence off to a good start in the southern and central Corn Belt.
Corn planting pace was reported at 88% complete, up 15% on the week. Similar to soybeans, the largest gains were seen in the northern grain belt with North Dakota reporting 50% of the corn crop planted last week. Minnesota saw similar progress with 28% of the crop planted in just one week. Corn planting continues to be in-line with the 5 year average for this week in spring. Emergence and crop conditions will be the driving force in the weeks to come as planting wraps up across northern states.
Corn and Wheat inspections were positive yesterday, while soybeans inspections was reported on the lower half of expectations. Corn beat analyst expectations soundly with 1.16 million metric tonnes while wheat was reported at a strong 507 thousand metric tonnes. Soybean inspections were reported on the low side of expectations with 89 thousand metric tonnes last week.