Corn down 3¢; wheat also in the red. Monday, May 1, 2023

Corn is down 3¢ this morning.

Soybeans are up a penny.

CBOT wheat is down 6¢. KC wheat is down 9¢. Minneapolis wheat is down 7¢.

The latest USDA Crop Progress report is expected this afternoon. Patti Uhrich, commodities broker for CHS Hedging, says the trade is expecting corn planting to be at 25% and soybean planting to be at 20%, both ahead of average.

Also expected this week is another interest rate increase from the U.S. Federal Reserve, says Arlan Suderman, chief commodities economist for StoneX. The Federal Open Market Committee meeting concludes Wednesday.

“Wall Street fully expects one more rate hike from the [Federal Reserve] this week, followed by a pause, before seeing a couple of rate cuts later this fall,” says Suderman. “In other words, Wall Street is convinced that we will see a pivot this year, with the last of the rate hikes coming this week.”

The next USDA World Agricultural Supply and Demand Estimates (WASDE) report is scheduled for release next Friday, May 12.

“Traders expect it to show expanding corn and soybean balance sheets in the year ahead, and possibly to show significant expansion beyond that if the anticipated El Nino growing season results in above-trend yields,” Suderman says. “That’s the sentiment that we will likely continue to see traded over the next couple of weeks, with the planting window opening across the Midwest. Water levels are coming down over much of the northern Red River Valley, with the cresting waters moderating on the Mississippi as they flow south. Much of this has already been priced into the market, but there’s currently not a headline to flip the momentum higher, leaving “oversold” as the only reason for market bounces.”

Live cattle are down 68¢ this morning. Lean hogs are down $1.85. Feeder cattle are down 58¢.

Crude oil is down a dollar.

S&P 500 futures are up 5 points. Dow futures are up 76 points.

Tags: wheat, futures, сorn, live cattle, feeder cattle, lean hogs, soybeans