SEVERE Midwest Weather + China Soybean Rumors

Grain Markets and Other Stuff

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🌩️ Severe Weather in the Midwest
Iowa Governor Kim Reynolds has issued a proclamation of disaster emergency for 15 counties due to severe weather on Tuesday. Several tornadoes touched down near Des Moines, with search efforts ongoing to account for those affected. The heaviest rainfall occurred in Iowa, eastern Nebraska, and southern Wisconsin, also impacting Minnesota and eastern South Dakota. Check out the detailed weather maps below for more information.
🌾 Global Agricultural Market Trends
US Soybean Sales to China
Recent reports indicate that China may have purchased at least two cargoes of US soybeans. Each shipment is approximately 65,000mt and scheduled for July delivery. This comes amid a challenging season for US soybean sales to China, which has not purchased any new crop US soybeans for the first time in 19 years. Brazil remains a key supplier, although recent floods and the end of the prime export season have driven up prices.
Wheat Futures Rally
Wheat futures surged after Russian agricultural consultancy IKAR reduced its forecast for Russia's 2024/2025 wheat crop to 83.5mmt, a 10% decrease from last season. The drop is due to frosts and hot, dry weather. Similar conditions are expected to affect Ukraine's wheat crop, raising concerns about global supply shortages and pushing wheat futures to a nine-month high.
🏛️ Policy Updates
Gasoline Reserve Release
President Joe Biden announced the release of 1 million barrels of gasoline from the Northeast reserve to help lower prices as summer driving increases. The gasoline will be released between Memorial Day and July 4th. Despite this effort, experts believe it will have minimal impact on current prices, which are averaging around $3.60 per gallon.
📊 Economic Indicators
USDA Corn Sales
On Tuesday, the USDA reported multiple flash sales of corn. US exporters sold 113,050mt (4 million bushels) to Mexico, split evenly between the 2023/2024 and 2024/2025 marketing years. Additionally, 110,000mt (4 million bushels) were sold to Spain for the 2023/2024 marketing year.
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