By Kirk Maltais
-Soybeans for July delivery fell 1.7% to $11.63 a bushel, on the Chicago Board of Trade on Tuesday, with traders selling in response to better-than-expected planting progress for U.S. crops.
-Wheat for July delivery fell 0.7% to $6.04 3/4 a bushel.
-Corn for July delivery fell 0.5% to $4.47 1/4 a bushel.
HIGHLIGHTS
Moving Out Front: Monday's Crop Progress report from the USDA showed better-than-expected progress for farmers seeding their fields through the week ended April 28, which pressured CBOT grains today as ideas of weather-related disruptions were pushed aside. The USDA's report says that 27% of the U.S. corn crop is planted, which is 4 points higher than this time last year and 5 points higher than the 5-year average. The soybean crop is 18% planted, up 2 points from last year and 8 points from the 5-year rate. Spring wheat is well ahead of schedule, with 34% of that crop planted, up 24 points from 2023 and 15 points ahead of the 5-year average.
Wellness Check: The Crop Progress report did show a 1 point drop in winter wheat condition, at 49% good-or-excellent condition. While this supports the assertion that dry weather in some areas is hurting winter wheat, strong progress in spring wheat appears to be offsetting that weakness. Additionally, winter wheat harvesting will start soon, and traders are bracing for a flood of new supplies into grain bins. "It's tough to be long in front of the northern hemisphere harvest," Charlie Sernatinger of Marex said in a note.
INSIGHT
Rainy Days: While this week's Crop Progress report from the USDA showed better-than-expected momentum for grains being planted in the Corn Belt, some analysts maintain that planting delays may come soon for U.S. farmers. "There is rain in the forecast for most of this week and that may generate some buying interest on concerns about planting delays," Summit Commodity Brokerage's Tomm Pfitzenmaier said in a note. He added at this point, such concerns may be a bit premature.
Shrinking Size: Fund traders appear to be liquidating some of their exposure to grain futures, according to the latest estimates of commodity markets open interest from JPMorgan Global Commodities Research. The firm says that open interest in agricultural futures dropped nearly $12 billion for the week ended April 26 versus the previous week. That's a 4% fall from the previous week, and makes it a third consecutive week that open interest in agriculture fell. Much of the decline comes from traders covering short positions in grains, said the firm in a note.
Taking a Hit: Falling crop prices from an abundant supply of grain is translating into stress on the agriculture giant Archer Daniels Midland, as the Chicago-based company faced declining operating profits across its different business units. Still, ADM posted first-quarter adjusted EPS of $1.46, which was above analyst expectations, but down from a year ago. The company's $21.8 billion in quarterly revenue was below Wall Street views, and may be evidence of how prices in the field will affect company revenue this reporting period.
AHEAD
-The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
-The USDA will release its monthly Grain Crushings report at 3 p.m. ET Wednesday.
-Corteva Inc. will release its first quarter earnings report after the stock market closes on Wednesday.
-Mosaic Co. will release its first quarter earnings report after the stock market closes on Wednesday.
-Pilgrim's Pride Corp. will release its first quarter earnings report after the stock market closes on Wednesday.
Patrick Thomas contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
04-30-24 1558ET
