Last week ended with markets from stocks to soybeans down in the dumps after announcement of tit-for-tat tariffs in the trade war with China. News overnight that the two sides are talking gain shocked those same markets higher, helping beans to double digit gains.
Hopes for trade talks with China in September are helping some markets as August ends, giving a lift to both stocks and soybeans. Corn followed along with more modest gains overnight but wheat broke in all three markets, weighed down by a rush of deliveries on first notice day for September futures.
USDA moved corn a point higher and soybeans two points higher in its latest crop progress report, out Monday afternoon. This year’s corn crop is now rated 57% good-to-excellent, up from 56% a week ago. Soybeans moved from 53% in good to excellent condition to 55%. Spring wheat conditions slipped a point lower, with 69% of the crop now rated good to excellent. The spring wheat harvest moved from 16% too 38% complete. The winter wheat harvest reached 96% last week.
In the latest weekly export inspection report from USDA, covering the week ending August 22, some totals slipped from a week ago but remained on the high end of trade expectations. Soybean export inspections, in particular, were worth noting according to Farm Futures senior grain market analyst Bryce Knorr.
Wheat wins the gold star in the latest USDA export report, covering the week ending August 22, after climbing to a marketing-year high. Corn and soybean exports didn’t fare too badly either.
Farmers plan to plant more corn, soybeans and wheat in the coming year after historic flooding in 2019 prevented planting on record acreage. But Farm Futures first survey of 2020 planting intentions shows not all of the lost ground may go back into traditional row crops.
Friday’s market reports
Grain futures are mixed this morning, supported by a better mood in financial markets but weighed down by deliveries across the board against September futures on first notice day. End-of-the-month positioning ahead of the Labor Day weekend could also be in play today in many markets.
Wheat prices fell double digits Friday on a big round of technical selling, with corn also sliding in the red from some technical selling. Soybeans hung on for small gains, in contrast, as U.S.-China trade tensions appear to be easing for now.