Morning Market Insight

June 20, 2018
Alek Heier
Grain Marketing Specialist
 
CORN: As of 7:45- Up 1

Trading higher off yesterday’s lows as the market is looking a bit oversold for now. Large spec funds are an estimated net short of 25.5k, but were long an estimated net 85k one week ago. The trade conflict between the U.S. and China still looms overhead. Ukraine has exported 17.4 mmt of corn throughout this marketing year, down 13% year over year. U.S. weather remains favorable with rains forecast across most of the major growing areas.

SOYBEANS: As of 7:45- Up 2

The soybean market stabilized overnight after trading lower initially. The market will continue to watch the headlines coming from the trade conflict between the U.S. and China. One Chinese trader has estimated that China will buy up to 80% of its normal intake of soybeans due to rationing/ raised costs by tariffs. Brazil premiums on soybeans jumped over 7% yesterday as the trade conflict with China fuels demand from Brazil. Premiums rose $1.40 per bushel, reaching their highest levels since April.

WHEAT: As of 7:45- Mpls up 7, KC up 7

Wheat also rebounded overnight with light fund buying. News in the wheat market is sparse. Harvest and favorable weather conditions continue to guide this market. Russia is forecast to be much drier than normal over the next 7-10 days, including eastern Ukraine. Ukraine exported 16.8 mmt of wheat so far this year, down 2.6% year over year.

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