Written Commentary
Grains are higher. Glass is half empty. Flow of money is buying equites and commodities after China lowered its quarantine policy. SU is up 17 cents and near 14.69. SX is near14.51. SMU is near 402.9. SMN is near 447.0. BOU is near 67.78. CU is up 9 cents and near 6.70. CN is near 7.54. CZ is near 6.63. WU is up 21 cents and near 9.40. KWU is up 13 cents and near 9.92. MWU is up 3 cents and near 10.48.
US stocks are higher. US Dollar is mixed. Crude is higher. Gold, silver, copper, coffee, cocoa, sugar and cotton are higher.
World Weather July and August weather forecast suggest above normal temps in WCB and west Delta. Normal to above in ECB. Rainfall below normal in WCB and west Delta. Normal to below in EDB.
USDA dropped US corn rating from 70 pct G/E to 67. Crops dropped in IN and OH. Lowest rated crops are in MN and OH. Highest are IL, IA, MI, MO, SD and WI. USDA dropped US soybean rating from 68 pct G/E to 65. Lowest rated crops are in MN and OH. Highest are AR, IL, IA, LA, and WI. USDA left US spring wheat rating at 59 pct G/E. USDA left US winter wheat rating at 30 pct G/E. US winter wheat harvest was 40 pct vs 35 average.
US domestic corn basis remains firm as crushers, feeders and exporters try to add to ownership. Domestic US soybean crush values remain positive. Nearby soybean futures. supported by hope for higher China demand for US soybeans.
This week is key USDA acreage and June 1 stocks report. Trade estimates US June 1 wheat stocks near 655 mil bu vs 845 ly, corn stocks near 4,343 mil bu vs 4,111 ly and soybean stocks 965 vs 769 ly. Key will be pct corn and soybean on and off farm.
USDA will also update US planted acres by crop. Wet spring may have reduced corn and wheat acres but raised soybeans. Trade estimates US corn acres near 89.8 mil vs 89.5 in March and 93.3 ly, soybean acres near 90.4 mil vs 90.9 in March and 87.2 ly and all wheat acres at 47.0 vs 47.3 in March and 46.7 ly. US spring wheat 10.8 vs 11.2 in March and 11..4 ly.
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