Morning Market Insight

May 24, 2018
Jeremy VanderVorst
Grain Marketing Specialist

Corn  2-3 higher

December Corn trading at 4.29 which is new high for the contract. Funds continue to buy corn and now are near an estimated 264,000 contracts long which is nearing record levels. Corn use for ethanol last week was 107.1 and only needs to be 102.4 to meet the USDA expectations. Keep watch on the second corn crop in Brazil as the forecast has turned dry again, currently forecasts are down sharply from last year’s record production.
Soybeans 8-9 higher
Continue to garner support from the corn and wheat markets. New crop soybeans traded in the overnight within ½ cent of the contract high. Wednesday there was 2 cargos of soybeans sold to the Chinese this has helped ease fears of a trade war going forward.  Talk continues around increased acres as many believe some will switch to planting soybeans as we near the end of corn planting.
Wheat 2-5 higher
Traders are taking close attention to the dryness concerns in the US and also around the globe as Canada, Australia and Russia are all experiencing dry conditions. Weather will stay as the top focus as this weekend we have potential for record breaking temps for much of the Plains.

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