Written Commentary
MORNING AG OUTLOOK
Grains are lower. US, Iran and Israel ceasefire is being tested. Above normal Midwest temps is dissipating with showers in upper Midwest. US stocks are sharply higher. Some could see DOW testing 44,000. USD is lower. Crude is lower and near $65 after testing $76 Monday. Gold is sharply lower.
SOYBEANS
SU is near 10.36. BOU is near 52 cents. SMU is near 291. Dalian soybean, soymeal, palmoil and soyoil were lower. Some est US June 1 soybean stocks near 984 mil bu vs 970 ly. USDA rated US soybean crop 66 pct G/E, unch from last week. Top crops are IA and MO. Lower crops AR, OH,SD. Weekly US soybean exports were only 7 mil bu. Season to date exports are up 11 pct vs ly and USDA up 9. Brazil farmer selling remains quiet. China buying Brazil soybeans also quiet. Brazil will increase biofuel blend from B14 to B15. One crop scout est US soybean crop at 4,252 mil bu vs USDA 4,340.
CORN
CU is near 4.15. Non-threatening US summer weather could drop CZ closer to 3.95. CU-CZ widened to -16. Dalian corn was lower. Some est US June 1 corn stocks near 4,683 mil bu vs 4,997 ly. USDA dropped US corn crop rating 2 pct to 70 pct G/E. Top crops are IA and MO. Lower crops ND, MI, OH,SD. Weekly US corn exports were 58 mil bu. Season to date exports are up 29 pct vs ly and USDA up 13. Brazil 2nd crop harvest is only 10 pct vs 33 normal. One crop scout est US corn crop at 15,730 mil bu vs USDA 15,820.
WHEAT
WU is near 5.62. KWU is near 5.58. MWEU is near 6.42. WU-WZ spread widened to -24. KWU-KWZ also widened out to -24. MWEU-MWEZ spread widened to -20. Some est US June 1 wheat stocks near 842 mil bu vs 696 ly. Weekly US wheat exports were only 9 mil bu. Season to date exports are down 20 pct vs ly and USDA up 16. USDA est US WW harvest at 19 pct vs 38 ly. USDA rated US WW crop down 3 pct at 49 G/E vs 52 ly. USDA also rated US SW crop 54 pct G/E also down 3 pct vs last week and 71 pct last year. There is talk EU wheat crop could be up 2 mmt from USDA est but farmer selling to date still less than 10 pct.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
