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Corn, soybeans and wheat each showed resilient strength overnight with wheat rebounding from yesterday’s weakness and posting the strongest gains.
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Corn, soybeans and wheat traded on both sides of unchanged overnight but are higher and near their session highs this morning, despite the escalating U.S./China tariffs war.
The plunge in the U.S. dollar to the lowest since April 2022 has far-reaching implications, including good and bad impacts for agriculture.
Markets showed a relatively muted response to the report data.
Corn ending stocks for 2024-25 were lowered to 1.465 billion bu., notably lower than the average pre-report estimate of 1.510. Soybean ending stocks were pegged at 375 million bu., 4 million bu. below the average pre-report estimate.
USDA estimated 32% of the U.S. winter wheat crop was experiencing D1-D4 drought conditions.
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Corn, soybeans and wheat each favored the upside in followthrough buying overnight.
Soybean sales during the week ended April 3 totaled 172,300 MT, which were down 58% from the previous week and 63% from the four-week average. Corn and wheat sales also declined on the week.
Soybeans show vulnerability to tariffs war with China.
Grains remain relatively calm amid volatility in global stock indices, bonds, currencies and other markets.
Corn basis firmed over the past week but remains below average.
The grain and oilseed markets shook off extensive selling pressure in equity futures overnight, each posting gains in the overnight session.
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U.S. reciprocal tariffs kicked in at midnight; China retaliated early this morning.
How USDA handles usage forecasts in the face of the trade/tariffs turmoil adds some uncertainty to what’s normally a uneventful report.