Corn futures closed marginally higher as most of today’s focus was on soybeans. The quasi-solution to the U.S./China trade war offered initial support, but corn found itself stuck between higher soybeans and lower wheat. Some spread unwinding was noted today as traders rolled out of long corn/wheat and short beans. The resolution of the trade fight, while not officially known what the results are, does not specifically apply to corn at this time. China buys very little corn from the U.S. and that is expected to stay that way for the foreseeable future. Corn inspections totaled 60.1 Mln. bu. Total inspections now stand at 1.428 Bln. Bu. Corn inspections need to average about 53 Mln. bu. per week to reach the USDA goal. As of last week, there were still 725 Mln. bu. of corn sales that still need to be shipped. Planting progress for corn, in this afternoon’s report, is expected to show that corn planting is 75 to 80% complete. The slow areas in the northern cornbelt made some progress late last week and should have at least a couple of clear days this week. The short term forecast for the majority of the corn belt looks favorable for crop development. Soybeans finished sharply higher on supportive trade news between U.S. and China. Over the weekend, it was announced that some trade resolutions had been reached. While specifics were not released, Treasury Secretary Mnuchin noted yesterday that he expects ag exports to China to increase by 35 to 45% this year along and for energy exports to increase over the next few years. The USDA said in the May report that U.S. bean export would jump to 2.290 Bln. bu. in 18/19. China would need to be an active buyer of U.S. soybeans for that to happen. For now, all tariff talk is suspended, which provided a general lift to a few different commodity markets today, as well as the equity markets. Bean inspections totaled 32.8 Mln. bu. Total inspections now stand at 1.677 Bln. bu., and need to average about 26 Mln. bu. per week.
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