WATSEKA – Two big factors currently impacting markets include the weather and exports.
Everyone in ag is keeping a close eye on the weather as 90-100 degree temperatures are expected in the Plains and across the Midwest.
“They’re talking about a strong ridge of high pressure to form in the central part of the country and it will be hot and drier while the eastern part of the U.S. will see more seasonal temperatures,” said Merrill Crowley with Midwest Market Solutions.
Elsewhere around the globe, the Black Sea area is still showing dryness and southwestern Ukraine is doing alright with small rains but the rest of Ukraine and western Russia will stay dry over the next 10 days. Also, spring wheat areas in Russia are experiencing cool, wet weather.
“A new area to watch is northern China. Hot, dry weather has dropped soil moisture to very short levels,” Crowley noted.
Other big news this week include President Trump’s announcement of tariffs on aluminum and steel to Mexico, Canada and the E.U. Mexico retaliated with tariffs on various products, although there was no mention of placing tariffs on U.S. grains. China is expected to retaliate against Trump’s renewed tariff threats by June 15.
The next USDA supply and demand report is due out June 12 with the quarterly stocks and planted acreage report to be released June 29.