Wheat was the real star of the show this past week as concerns over food inflation, Chinese buying, and export restrictions dominated traders’ attention:

May corn finished the week up 2 1/4 cents.

May soybeans closed up 19 cents.

May SRW wheat ended up 32 cents.

May HRS wheat finished up 16.

May HRW finished up 17 3/4.

Major fundamental themes we are watching are the loss of ethanol demand due to coronavirus lockdowns limiting transportation, consumer stockpiling increasing nearby food demand, a political shift toward food export restrictions in some Black Sea countries, and the depreciation of key currencies such as the Brazilian real, the Russian ruble, and the Canadian dollar. The devaluation of these currencies can make those countries’ exports more competitive globally, but it can also spark food inflation domestically, a politically sensitive issue that we are seeing in Russia and Kazakhstan. Chinese demand for US corn, wheat, and soybeans is another situation to monitor.

Have a great weekend!