Despite moderate losses on Friday, corn, soybean and wheat prices still managed to post sharp gains from the previous week. It was a shorter trading week as markets in the U.S. were closed on May 27 for the Memorial Day holiday.
Prices soared on Tuesday on forecasts for more wet weather as traders continued to be concerned about planting delays and the potential for yield losses.
For the week ending on May 26, the USDA reported that 58% of the U.S. corn crop was planted, down from 90% last year, and the lowest on record. Twenty-nine per cent of the soybean crop was planted, which was down from 74% last year.
The condition of the winter wheat crop declined as 61% of the crop was rated good to excellent, down from the 66% that was reported for the previous week.
On Friday, the prices fell after U.S. President Trump said the U.S. would impose a five per cent tariff on all goods coming into the country from Mexico on June 10 as punishment for illegal immigrants crossing the Mexican border into the U.S. Trump said the tariff would gradually increase until the “illegal immigration problem is remedied.”
For old crop corn, the Chicago future closed at $4.27 on Friday, up almost 23 cents from May 24. The new crop future (Dec.19) closed at $4.44, up 24 cents.
In Ontario, improving basis levels added to the bullish tone as the basis for corn was up 5 to 10 cents, while the soybean basis was 25 to 30 cents higher from the previous week.
For old crop corn, the Chatham-Kent (CK) high cash price was $5.52, up 33 cents. The new crop high price was $5.44, up 29 cents. For the month, the cash price gained 89 cents, while the new crop price was up 73 cents from April 30.
At the same time last year, the CK high old cash price was $4.84, and the new crop was $4.94.
The old crop soybean future in Chicago closed at $8.78, up 48 cents from the previous week. For new crop, the Nov. 19 future closed at $9.05, up 49 cents.
The CK high old crop price was $11.08, up 73 cents. The new crop price was also up 74 cents at $11.30. For the month, the old crop price was up 44 cents, and the new gained 40 cents.
Last year, the CK high old crop price was $12.79, and the new was 12.89.
For wheat, the July future in Chicago was up almost 14 cents from the previous week, closing at $5.03.
The Grain Farmers of Ontario (GFO) Soft Red Winter Wheat cash price was up 23 cents at $6.67. The new crop (Harvest 2019) price was 29 cents higher at $6.80. For the month, the cash price gained $1.21, and the new crop was up $1.13.
Last year, the GFO Soft Red Winter Wheat cash price was $6.45; the new crop price was $6.66.