Grain Tidbits - April 30, 2018

8:07 AM 4/30/2018

The US Crop Progress report showed corn is 5% planted vs 14% average, but the weather forecast is favorable going forward for field work. Sorghum buyers in China are actively lobbying the government to exclude those cargoes afloat before the tariff was applied. No comment from the Department of Commerce as of yet.  Most of the sorghum cargoes redirected are trading for steep discounts off their original purchase price.

China has taken 26% fewer soybeans from the US and increased their purchases from Brazil by 33%.  Argentina has been purchasing soybeans from the US. China imports more beans than the two major exporters produce. The USDA is forcasting Argentina will crush more than it produces for the first time ever.  The only real option for them to source beans is the US. China's absence is a problem. It seems like beans want to trade in a relatively narrow range.  It remains to be seen what comes out of the trade talks that come out of China with the US trade delegation.

Wheat saw confirmation of additional export demand over the past week.  Basis levels held steady.  Wheat sales came in at more than double the four week average.  There is concern about the freeze damage in southern hard red winter wheat areas, with a crop already rated mostly poor.  

I hope to see the weather cooperating through the planting season, followed by timely rains, throughout the growing season.