Written Commentary
MORNING OUTLOOK
Grains are quietly higher. SN is up 10 cents and near 17.01. SX is near 15.22. SMN is near 414.7. BON is near 78.65. CN is up 2 cents and near 7.33. CZ is near 6.93. WN is up 12 cents and near 10.53. KWN is up 12 cents and near 11.40. MWN is up 10 cents and near 12.07.
US Dollar is lower. Crude is lower. Saudi Arabia announced they will replace loss Russia Crude supplies. Gold, silver and copper are higher.
US central and south plains and Midwest forecast calls for normal rains. US north plains drier but rains return next week. Could be some needed rains on France and Germany. Black Sea, Brazil, Argentina and north China plains remain dry.
Wheat futures trade sharply lower again on Wednesday. Lower energy prices may have triggered more long liquidation with no resting buy orders. US weekly exports remain slow. Egypt is bought 465 mt wheat including Russia and near $489. Freight was $38. EBRD lent Tunisia $150 million euros to buy wheat. Trade still waiting on news if Russia will allow Ukraine exports. Ukraine wheat crop is est near 20 mmt with 10 mmt available for export. US wheat prices are still not competitive to buyers.
Corn futures followed losses in wheat. US corn demand is increasing. Trade still waiting for news if Russia will allow for Ukraine food exports. Brazil remains dry. Brazil Sep corn futures are 1.00 over US Sep near 7.06. USDA est Ukraine corn crop at 20 mmt and exports at 9 mmt. End stocks are record 15 mmt. USDA est Ukraine 2021/22 corn exports at 23 mmt versus 33 mt before the war. NOAA 30 day US forecast has normal rains, below temps north above south.
Soybean futures are higher. USDA announced 132 mt of US soybeans to China. Trade reports China has also bought 2 Brazil cargoes and 1 Argentina cargo for July and 2 US PNW for Aug-Sep. Argentina soybean harvest is done. China will sell 500 mt soybean reserves on June 10. Indonesia announced they have issued 160 palmoil export permits to 18 companies for 180 mt of exports. Dalian soybean, palmoil and soyoil prices ended higher. Soymeal lower.
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