Head of Commodity Strategy, Saxo Bank Group
Summary: Monday saw the US Department of Agriculture release its latest planting progress figures, with corn planting posting the slowest result since 1980 and soybeans showing the slowest print since 1996. Both commodities rallied in response.
Potent storms on Monday in the central and southern plains may bring flash floods and tornadoes, and parts of the northern Midwest are under frost. Heavy precipitation has pushed back corn and soybean planting in the central US, placing wheat quality at risk.
While wheat and corn have rallied strongly, soybeans have been held back by booming inventory levels with nowhere to go due to lack of Chinese demand (ASF and trade war). Adding insult to injury, we now have the potential risk of corn acreage, weather permitting, being switched to later-planted beans.