Friday night wrap-up, US grains reverse Thurs losses

Chicago grains & oilseeds closed firmer across the board Friday, effectively reversing Thursday night's heavy losses. Crude oil had a bad case of the jitters Thursday which dragged everything else down with it. Having stabilised Friday, grains followed suit.

Nearby beans closed around 40c firmer with new crop months around 30c higher. Old crop/new crop spreading was a feature as a strong crush and nearby export demand served as the catalyst that allowed the front end of the market to gain at the expense of deferred-month futures. Nevertheless futures remain in a sideways pattern as a glance at the chart to the right shows.

Corn closed around 17c firmer, rallying strongly in the last half hour of the session (see chart below) on damage limitation ahead of the weekend. Heavy rainfall in the western U.S. corn belt, particularly Iowa, was raising concerns about continued emergence delays, and the likelihood that many farmers will have to replant, which at this late stage would likely result in lower yields. As well as it's normal planting progress report Monday will see the USDA's first crop condition ratings of the season for the emerging corn crop. The portion of the crop rated good-to-excellent is expected to be well below the average of 70% for the first report of the season.

Wheat closed around 18c firmer, dragged higher by beans & corn late in the session (see chart below). Whilst the hotter, drier forecast for the US across the weekend & into the next week is seen as being largely beneficial for corn & beans hotter temperatures in the Plains during the next five days could increase stress to wheat.