Wheat is slightly higher early Wednesday, with corn and soybeans struggling. Cattle trade 2-sided, with hogs higher.
Randy Martinson, Martinson Ag, says wheat is seeing some strength from lower crop conditions,.
USDA reported winter wheat at 50% good to excellent, down 2% from last week. With 75% of the crop headed, 5% ahead of average.
Spring wheat was at only 45% good to excellent on its first rating of the season, which was the lowest levels since 2021, 26% below expectations and below the five year average. Last year the crop began at 74% good to excellent.
Wheat is off overnight highs though as harvest is starting in Texas and applying some pressure.
Corn was higher overnight as well with the first crop ratings on the season coming in lower than expected at 68% good to excellent, which was also below the five year average.
U.S. corn planting is at 87% and soybeans at 76%, both ahead of average pace. Several states in the East and Southeast Corn Belt are lagging including Ohio, which is around 20% behind average on corn, 10% behind for soybeans planted.
However, corn is struggling as soybeans have pulled lower on ideas of some acres being switched from corn to soybeans in areas of the Eastern and Southeastern Corn Belt that are unable to plant corn due to excessive moisture.
Forecasts look improved moving ahead with some warmer, drier weather and the trade may also be looking ahead with ideas the crop will improve.
Martinson says grains are also dismissing any trade deal developments, including the EU talks, and waiting for more concrete details or some actual sales to transpire.
Cattle futures are trying to recover from yesterday’s huge selloff triggered by rumors on New World Screwworm.
Cash trade was at record levels again last week at $226.97 on the five area weighted average, which was up $.52 from the previous week.
The futures discount to that cash is supportive but the technicals do look weak after yesterday’s action he says.
but corn and soybeans struggle. Cattle two sided trying to recover after the NWS rumor hurt the market.
