Written Commentary
MORNING AG OUTLOOK
Grains are mixed. USDA acreage and stocks report day. US stocks are higher. USD is lower. Crude is higher and near $64. Gold is slightly higher. US cut off trade talks with Canada. Senate is debating/voting on Trump big beautiful bill. Russia continues to missile Ukraine. Israel continues to bomb Gaza. World nuclear watch dog suggest Iran still has enriched uranium. GSI Commodity Index near key support with gaps above the market.
SOYBEANS
SU is near 10.20. Most look for USDA to increase US soybean crop rating 2 pct. Trade est US June 1 soybean stocks near 980 mil bu vs 970 ly. Trade est US soybean acres at 83.6 mil vs March 83.5. BAGE est soybean crop at 50.3 mmt vs USDA 49.0. Managed funds increase soymeal short. SMU is becoming oversold. BOU is filling the gap below prices due to fact US crush near capacity will satisfy increase biofuel demand. SN soybean deliveries were 200, soymeal 643 and soyoil 7.
CORN
CU is near 4.11. Most look for USDA to increase US corn crop rating 2 pct. Trade est US June 1 corn stocks near 4,641 mil bu vs 4,997 ly. Trade est US corn acres at 95.3 mil vs March 95.3. US farmer selling is slow. There has been some talk Brazil corn crop could be as high as 150 mmt. Brazil corn futures made new lows. Increase Brazil corn exports could drop US exports to 2,200 mil bu a bd increase US 25/26 carryout to 2,200. Argentina est soybean crop at 49.0 mmt vs USDA 50.0. CU and CZ could drop below 4.00. CN deliveries were zero.
WHEAT
WU is near 5.40. KWU is near 5.33. MWEU is near 6.28. Trade est US June 1 wheat stocks near 836 mil bu vs 696 ly. Trade est US wheat acres at 45.4 mil vs March 45.4. Survey est EU wheat crop near 131 mmt vs USDA 136.5 and Russia 84.6 mmt vs USDA 83.0. Canada wheat exports 25.1 mmt vs 22.1 ly. Drier US plains forecast could aid harvest. Higher World exporter wheat supplies and slow import demand could weigh on futures. US HRW carryout could increase carryout to 500 mil bu. WN deliveries were 10, KWN 315 and MWEN 182.
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.
