Commodity Market Update May 30, 2019

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May 30, 2019 | by Joel Fingerman

Dear Joel:

Grains

Corn Planting

Corn planting is significantly behind average pace, and weather forecasts continue to weigh on future planting prospects. Crop progress numbers reported Tuesday show corn plantings progress at 58%, below the average market estimate of 63% and below the five-year average of 90% for this week of the season (Chart 1). This is the lowest planting progress recorded.

The latest WASDE report estimated 92.8 million acres to be planted for 2019. Since the planting progress is at 58%, 39.0 million acres remain to be planted. With only about four weeks left in the planting season much less than 39.0 million acres will be planted. 
The unplanted acreage will impact production, and corn prices are reacting to the decreased production. Corn prices have traded as high as $4.40 a bushel recently, prices not seen since June 2016 (Chart 2).
Chart 1
Chart 2
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Regards,
The Fundamental Analytics Team

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