The Good: Soybean sales continue to be strong in the U.S. with net sales of 518,700 tonnes of old crop and new crop sales of 560,700 tonnes for the week ending on June 18th. The bulk of the sales this past week were to China. Despite logging nearly 1.1 million tonnes of sales between old and new crop positions, the current pace of soybean exports remains slow relative to previous years. At 44.8 million tonnes for the current crop year, this is the slowest pace of commitments since the drought year of 2012-13.
The Bad: Spring wheat prices are becoming a top contender for the bad or the ugly news of the day as the September contract continues to test the lows set in May. The reason for the drop today was attributed to poor export sales and rains that were tracking through North Dakota. The system dropped some rain in western North Dakota before tracking northward into central and western Manitoba. There is more rain forecast for the Northern Plains and the eastern Prairies this weekend. The rains are likely to stabilize the condition of the spring wheat crop in North Dakota, which was under significant moisture stress before the rains arrived.
The Ugly: The nearby coffee contract continues to drop in the face of large global supplies which will pressure economies in Africa and Latin America this year. The downturn in coffee prices may create additional instability in these areas as they deal with the COVID-19 crisis. Unfortunately, my recent trip to the grocery store confirms that prices for coffee have not dropped due to lower coffee prices. Hopefully we eventually see the prices for our morning cup drop soon.