July corn up 8 ¾ at $4.13
July beans up 11 ½ at $8.4125
The DOW is up
USD is stronger
Crude oil up $.53 at $59.16
Corn prices have rebounded all the way back to last year’s level. The new-crop DEC19 contract is trading back north of $4.25 per bushel, a rally of +60 cents in a little over two-week’s time. Weather extremes, planted acres, re-planted acres, preventive-plant, yield drag, the second round of trade subsidies, etc. all remain the topic of conversation and debate inside the market. This afternoon the USDA is scheduled to release their planted acreage estimate, which most are expecting to come in between 60% and 65% planted vs. 49% last week vs 92% planted last year at this stage vs. 91% in the 5-year average.
Soybean prices are being pulled higher by ongoing U.S. weather uncertainties. The market has rallied +50 cents from the lows posted two-weeks ago. Most inside the trade are looking for the USDA to show somewhere between 26% and 30% of the crop is now planted vs. just 19% last week vs. 77% last year at this stage.
According to China’s ag ministry, the prevention and control of army worm is crucial to the country’s ability to hit annual grain output targets. The destructive worm has spread to 14 provinces and regions and has been found in 227,000 acres of farmland in China after it was first detected in January. Fall army worm can infest and damage hundreds of acres of corn in a single night. Understand, experts are predicting the fast-spreading pest is expected to reach China’s corn belt in the north in June and July. China grows corn on about 104+ million acres and is expected to produce about 257 million metric tons this year. (Source: Reuters)
It’s being reported that Chinese scientists will start working on clinical trials of an African swine fever vaccine — that is according to state media in China. The state-owned Harbin Vet Research Institute says they have found two vaccine candidates proven to offer immunity to the disease. However, the scientific community who work on animal vaccines have responded with skepticism saying that developing and launching an effective vaccine is quite difficult.