5/26/2023

Rumors of milling quality wheat imports came about this week. Confirmed by European traders, 5 shipments May-August totaling 210,000 tonnes will be sourced from Poland and Germany. With European wheat prices at 22-month lows, the commercial calculation currently works for European wheat into the U.S... This will likely hit the East Coast with some likely making it to the interior.

The U.S. wheat crop is in rough shape. That is not unknown. Current yield estimates based on the HRW condition index are in the 37 bpa to below 30 area. Some estimates are calling for the highest abandonment rates this century at close to 30%. 

New crop corn values bounced up off their lows this week. There are talks of prevent plant in North Dakota and a flash drought throughout the corn belt. With a wet El Nino summer projected, favorable rains are not expected until the first or second week of June giving the corn crop a rough start. It would be a good idea to look at locking in some new crop above $5.00 with how large the U.S. crop is expected to be.

The deadline for raising the U.S. debt ceiling is days away. The treasury department warns that it could run out of cash on or shortly after June 1^st. The word is that the White House and Republicans are close to an agreement on raising the debt ceiling. That would have significant implications for both the U.S. economy, as well as for the markets.

https://www.nbcnews.com/politics/congress/live-blog/debt-ceiling-live-updates-rcna86158

Please join us in congratulating Colt Foster. He has been serving as the Grain Originator for Farmers Coop and was recently promoted to Grain Division Manager. Congratulations Colt!

Farmers Coop’s Grain Team is available for helping develop marketing plans for producers. Call the Hemingford Grain line at 308-487-3325 to discuss current markets and strategies.