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Grains Higher, Soybeans Rallied Overnight

MORNING OUTLOOK

Grains are higher. SK is up 16 cents and near 16.72. SMK is near 463.4. BOK is near 75.41. CK is up 7 cents and near 7.71. CZ is near 7.24 and new highs. WK is up 28 cents and near 11.09. KWK is up 24 cents and near 11.66. Overnight high was 11.68. MWK is up14 cents and near 11.56.

US Dollar is higher. Crude is higher. Crude and many commodities are higher before US CPI, talk China could relax some of their covid restrictions and OPEC cannot replace Russia oil for EU.

US Midwest weather will be a mixture on cool/wet east and warm/dry west. Dry weather continues in US south plains. Central Brazil is dry.

May soybean futures rallied overnight on talk of increase US soybean export demand and higher energy prices. Uncertain US summer weather could push SX over 15.00 and test 15.20. BOK supported by higher sunoil and rapeseed oil prices.  Soybean daily volume is increasing. US soybean cheapest to buyers July forward. China June forward soybean coverage only 10-15 pct. Argentina trucker strikes continues.

May corn is near 7.71. USDA may be too high with Ukraine and Argentina exports and too low with US exports. CZ is making new highs on talk late planted US crop could drop yield outlook below 180 bpa. SX/CZ 2.1 ratio is not buying additional US 2022 corn acres. US corn plantings are 2 pct vs 2 pct last week and 4 pct average. Corn daily volume and OI is increasing.

May Chicago wheat traded over 11.00. May KC wheat tested 11.66. US south plains weather forecast is warm and dry and could help push KWN over 12.00. USDA rated US 2022 winter wheat crop 32 pct G/E vs 30 last week and 53 ly. This is 4th lowest. KS 34, TX 7, MO 57 and WA 56. Matif wheat futures higher on talk of higher export demand. Egypt tendering for EU only wheat.

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