Weekly Market Update 5/22/2025

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

Trivia

1. If you get an eagle in golf, how many strokes did you get? 

2. Which monarch from England was born on May 24, 1819?

Answers at the bottom.

Market News

END OF THE PENNY?: The Treasury Department announced plans to stop manufacturing pennies – a Treasury spokesperson confirmed that they placed their final order for penny blanks this month. Penny blanks, which are flat metal disks that the Mint turns into the coin, will run out in early 2026. According to the U.S. Mint’s 2024 annual report, it costs about 3.7 cents to manufacture and distribute pennies. The Wall Street Journal reports that the Treasury department lost $85 million last year on new pennies, with the move expected to save the government $56 million annually. Consumers that have pennies will still be able to use them, but businesses may have to start rounding cash transactions up or down to the nearest nickel without any new pennies moving into circulation.
 

CROP PLANTING PROGRESS: As of Sunday, U.S. farmers had planted 79% of corn and 65% of soybeans. This data comes before the USDA's weekly crop progress report, expected to show above-average planting rates for both crops due to favorable Midwest weather. However, recent rains have slowed progress in southern Midwest areas. A record corn planting is anticipated, while soybean acreage may drop to a five-year low as corn appears more profitable. Farmers are uncertain about demand amid tariff disputes, particularly with China. By May 11, 62% of corn and 48% of soybean crops had been planted. Analysts expect 54% of winter wheat to be rated as good to excellent, the highest since 2019, while spring wheat planting is estimated at 80% complete, up from 66% the previous week.


EXPORTS: Corn sales reached 46.9 million bushels, above average, with Japan, Mexico, and Colombia as the top buyers. New crop sales were at 8.6 million bushels, slightly ahead of last year. Wheat export sales had minor cancellations, but new crop sales hit 882,000 metric tons, including notable shipments to Colombia, Mexico, Vietnam, Nigeria, and Brazil. U.S. soybean export sales for the old crop were 11.3 million bushels, exceeding last year's by 9.4 million bushels, though new crop sales were disappointing. Corn inspections were strong and near estimates, while wheat met expectations. Soybean shipments fell 8 million bushels short of estimates, with milo writing down 1.5 million bushels shipped.


 

OUTSIDE MARKETS: After a jittery start, stocks are mixed today as the market takes in the House’s passage (215-214) of President Trump’s tax bill. The bill includes tax breaks, spending cuts, and border security funding, among other priorities in President Trump’s agenda. Markets do seem to have questions about what the tax cuts could mean for the already large U.S. debt. The bill is now headed for Senate, with the President hoping to have it on his desk to sign by July. Currently, the Dow is up slightly (0.0071%), the Nasdaq is up 0.43%, and the S&P 500 is down 0.018%.


MARKET UPDATE: Old crop corn futures saw a 1/4-cent increase during the overnight trading session, making this their fifth consecutive gain with the highest settlement price markets have seen since early May. December futures also saw their highest settlement price since mid-April at the close of the overnight trading session. Market gains seen this week are largely a component of a slide in the value of the dollar that has driven some short coverings. While export sales were down this morning from the previous week, they continued to trend above average, with N/C sales falling in-line above last year’s pace too. The focus of the corn market continues to be weather, planting pace, and South American safrinha harvest.

Both July and November soybean futures fell overnight – 2- and 4 ¾-cents, respectively, however market gains seen during the intraday session Wednesday pushed both contract settlements to the highest values seen in the last week. Strong new crop export figures have provided some market support, as traders look to see if last week’s numbers were a short-term snippet or the start of a more sustainable trend. While soybean planting progress is ahead of schedule, some weather concerns have also been noted. The weather outlook remains dry for portions of the northern Corn Belt and mostly unchanged for the eastern Corn Belt regions.

Kansas City July wheat futures ended the intraday session on Wednesday at a three-week high. Wheat futures have seen an extended rally this week following a decrease in USDA winter wheat crop ratings and global news that Russian wheat is facing struggles with cold and frosty conditions. Like corn, the weakening of the dollar has improved expectations around the potential for an increase in exports. While rallies this week have sparked market interest, the long-term picture for US wheat remains bearish overall.


WEATHER: Today is sunny, with a high temperature expected to reach 78 degrees. Winds are forecasted to be between 10 and 20 mph. A high of 80 degrees is projected for Friday. The weather looks pleasant for southwest Kansas until the holiday weekend, when cooler temperatures are anticipated, with highs around 60 degrees and lows in the 50s. Chances of rain are expected to start on Saturday and continue throughout the three-day weekend. By next Tuesday, temperatures are expected to return to the low 70s.

Trivia Answers

1. Two under par

2. Queen Victoria