Crude Decline and Fund Selling Push Grains Lower as U.S. Planting and Export Data Arrive

Overview

• On Wednesday, crude oil losses tied to reports of U.S.-Iran diplomatic progress helped drive midweek weakness in corn, soybeans and wheat futures by reducing demand expectations for ethanol and soybean oil.
• USDA NASS crop progress released this week showed U.S. corn 86 percent planted and soybeans 79 percent planted, both ahead of their five-year average planting paces and signaling limited near-term weather risk to acreage.
• USDA export inspection tallies for the week ending May 21 reported 1.582 million metric tons of corn shipped and 571,620 metric tons of soybeans shipped, with corn marketing-year exports up about 28 percent and soy exports about 21 percent below last year.
• CFTC commitment data this week showed managed-money funds trimming net long positions in corn and soybeans, a move that amplified price swings as funds reduced exposure after recent rallies.
• Cattle markets stayed volatile after the May 1 Cattle-on-Feed report showed inventories about 2 percent higher year-over-year and April placements up roughly 6 percent, and traders reacted to mixed cash and boxed-beef signals that briefly helped futures recover on Wednesday.