Weekly Market Update 6/5/2025

Here is your weekly market update from the Garden City Co-op Grain Origination Team.

Trivia

1. What country gave the US the Statue of Liberty? 

2. Where is the Bermuda Triangle located?

Answers at the bottom.

Market News

 WHEAT DISCOUNT/PREMIUM SCHEDULE: GCC’s Wheat Discount/Premium Schedule has been updated effective 6/2/25. We’ve adjusted both moisture and dockage, and are even paying a premium for wheat with dockage below 0.5%. The changes made to our schedule more closely align with commercial discount schedules that our grain is subject to when it is sold. Please reach out to the grain team if you have any questions.

GCC discount schedules are available online at: https://www.gccoop.com/products-services/grain#discount-schedules

DROUGHT IN CHINA: In Maqiao village, northwest of the Terracotta Warriors in Shaanxi province, local farmers are struggling due to severe drought conditions that have impacted wheat yields. Farmers have reported that their harvest will be only half of the usual 1,000 kg of their plot. The area has experienced its highest average temperatures since 1961, leading to cracked soil and scorched crops. Many farmers have reported substantial losses, with some moving their harvest up by a week due to the drought. Recent rains have brought some relief but may disrupt the ongoing harvest. It remains uncertain whether this drought will lead China to increase its wheat imports. There has been no news about whether China will boost imports with various groups, but there may be updates soon that could benefit exporters like Australia. Although the drought has significantly affected yields in poorly irrigated areas, agro-consultant Rosa Wang suggests that the overall reduction in output is not expected to be substantial.

CROP PROGRESS: Rainfall has continued throughout portions of the Midwest; winter wheat conditions represented 52% good/excellent across the US versus 50% seen last week. Kansas represented 51%, 55% from OK, and 30% out of TX. Despite the continued moisture, planting progress is approaching the finish line - 93% of the United States’ corn crop has been planted this week, increased from 87% planted last week. Kansas sits at 92% planted, 98% planted in Nebraska, and 95% planted in Texas. Soybean planting progress was reported as 84% planted this week, up 8% from last week. Sorghum was reported as 46% planted, up 7% from last week, with the largest portion of planting progress still coming out of Texas at 84% planted.

EXPORT INSPECTIONS: Corn shipments continue to impress, coming in higher than expected this week at 62.0 million bushels. Corn has been trending above average – currently sitting 6% ahead of the seasonal pace needed to hit the current USDA estimate. Top destinations for US corn this week included Mexico, Japan, and South Korea. Soybeans came in within the range of estimates at 9.9 million bushels inspected for export, with top destinations of China, Bangladesh, and Mexico. Wheat inspections were decent again this week at 20.3 million bushels, surpassing even the top end of estimates. Wheat is sitting 3% ahead of the seasonal pace to hit the current USDA number, with top destinations this week of South Korea, the Philippines, and Indonesia. Milo had another disappointing week of shipments coming in at only 400,000 bushels, all of it going to Spain.

EXPORT SALES: Corn sales this morning were steady at 37.1 million bushels, just 1 million bushels more than last week. Mexico was a significant buyer, taking over 14 million bushels. New crop sales totaled 6.3 million bushels, aligning with last year’s pace. Wheat sales reached 444,000 tonnes for the new crop, near the lower end of estimates. Nigeria purchased both hard red winter and soft red winter wheat. A report indicated that Egypt is securing contracts with suppliers from France, Romania, Australia, and Brazil to reduce geopolitical risks. Soybean export sales were disappointing, falling at the low end of forecasts, and the market shows a downward trend. Reported cancellations in Milo sales.




WEATHER: Skies are mostly cloudy today with a high temperature near 73ºF – a 30% chance of scattered showers and thunderstorms possible after 5pm. Chances of precipitation in the overnight hours around 70% with some storms capable of producing heavy rainfall. Accumulations between a quarter and half an inch possible. Mostly clear skies are in store for your weekend forecast, with temperatures anticipated at around 83 ºF during the day and overnight temperatures sitting comfortably in the mid-50s. Early next week, we’re back to sunny and clear skies with high temperatures expected to be in the mid-80s.

Trivia Answers

1. France

2. The Atlantic Ocean