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Ags Lower on Wet EU Weather Model

MORNING AG OUTLOOK

Grains are lower. EU US Midwest weather model is a little wetter. SN is down 7 cents and near 13.91. SMN is near 396.4. BON is near 55.05. CN is down 8 cents and near 6.04. WN is down 7 cents and near 6.29. KWN is down 10 cents and near 7.81. MWN is down 6 cents and near 8.05. US Central Bank comments today. US stocks are higher. US Dollar is lower. Crude is higher. Gold, silver, copper, coffee and cocoa are higher. China continues to talk about stimulating their economy.

SN is lower. Soybeans rallied on reports that S&P Global lowered US soybean acres 500,000 to 87.0. Their crop estimate is 4,490 vs USDA 4,510. Overnight prices are lower after the latest EU weather model is a little wetter. EPA asked for a week extension to the June 21 deadline to announce biofuel mandates for 2023-2025. Brazil soybean export basis is lower which could slow US soybean export sales. SN-SX spread is near 2 week low. EU soymeal imports are down on talk of increase US soybean imports.

CN is lower. Overnight prices are lower after the latest EU weather model is a little wetter. EPA asked for a week extension to the June 21 deadline to announce biofuel mandates for 2023-2025. S&P Global lowered US corn acres 500,000 to 91.5. Their crop estimate is 15,114 vs USDA 15,265. Futures appear to be trading changes in EU weather model. Volatility tends to reduce daily volume. CN-CZ spread down 17 cents. Higher Brazil corn exports could slow demand for US. USDA est of US exports is 1,725 mil bu vs 2,471 last year. USDA estimates US 2023/24 exports at 2,100. Some feel exports may be closer to 1,900. US ethanol report today. IEA lowered estimate of 2023 World oil demand.

Wheat futures are lower. EU weekly wheat exports were near 1 mmt (37 mil bu). This and lower Russia prices limits upside in US futures. Putin warned of end to Ukraine export corridor deal. Very few vessels are being inspected. West Canada prairies could see needed rains. N EU, Ukraine and Russia spring wheat areas remain dry. S&P Global est US spring crop at 482 mil bu versus 501 last year.

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