Morning Market Insight

June 1st 2018
Drew Johnson
Grain Marketing Specialist                                                         

Corn: 1 higher
Corn holding it’s own as traders watch weather. Beneficial precipitation is expected, over the next three days, across the US northern and central Corn Belt. Brazil remains dry into the foreseen future.  Ethanol production increased, last week, from 1.028 million to 1.041 million barrels, while ethanol inventory dropped from 22.1 million to 21.3 million barrels as the summer driving season picks up. Export sales were reported at 45 million bushels, with 39.1 million bushels in the 2017-18 marketing year. This puts total sales at 2.144 billion bushels. 1% higher than last year. Total shipment, for the week, came in at 74.6 million bushels putting total shipments at 1.479 billion bushels, or 10% behind last year.  Fundamentally, corn is holding support at $3.90 and $4.12 July and December futures.

Soybeans: 4 higher
 Soybeans are having a hard time finding bullish news. US/China trade talks seem to be at a standstill. US old crop soybean demand is limited. Planting progress is ahead of schedule, and US weather forecasts are beneficial. Export sales were reported at 38.4 million bushels. 10.0 million bushels were in the 2017-18 marketing year. This put total marketing year sales at 2.038 bb, or 5% less than this time last year. Total shipments, for the week, were at 23.8 million bushels, with total marketing year shipments at 1.693 bb, or 10% behind last year. Support for the July and November futures are at $10.13 and $10.39 respectfully. 
Wheat: MPLS: 1 lower. KC: 5 lower
 Wheat seems to have found a bottom after Tuesday’s sell off. Drought conditions eased some in the dryer areas of the southwest, but weather forecasts, for next week, are showing triple digit temps are expected. Export salese were reported at 11.0 million bushels, with 1.1 million in the 2017-18 marketing year. This puts total marketing year sales at 872.4 million bushels, or 16% below last year. Weekly shipments of 16.3 million bushels put the marketing year total at 815.3 million bushels, or 15% below last year.

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