Written Commentary
Ag Market View for June 2.23
June 2, 2023
MORNING AG OUTLOOK
Grains are lower. SN is down 3 cents and near 14.14. SMN is near 422.3. BON is near 52.51. CN is down 2 cents and near 5.86. WN is down 2 cents and near 6.37. KWN is down 5 cents and near 7.49. MWN is down 2 cents and near 8.01. US stocks are lower. Some new concern about 3 regional banks is offering resistance. Talk US Central Bank may be done raising rates for a while offers support. US Dollar is lower and testing support. Crude is higher but did test 64 overnight.
Soybean futures rallied from 13.92 SN to 14.18 following news a drone tried to attack the Kremlin. Argentina and parts of C Brazil are dry. Brazil farmers remains a selling of beans. Dalian soybean prices are lower after holiday. Soymeal. palmoil and soyoil are higher. India monthly palmoil imports were down 30 pct. Some concern about late Canada canola plantings due to cold weather. Talk of lower EU hog herd could lower soymeal use. Weekly US soybean export sales are est near 100-400 mt vs 311 last week
Corn futures rallied from 5.69 CN to 5.85 following news a drone tried to attack the Kremlin. CN tested 5.92 overnight. Argentina and parts of C Brazil are dry. Dalian corn prices are lower after holiday. 5.75 CN could be key support. US east Midwest and NW could see more rain which could delay plantings there. CN tested 5.92 overnight. Weekly ethanol data was supportive due to lower stocks. CK-CN is near 59. CN-CZ is near 60. Trade will be watching to see of USDA lowers US corn exports in their May update. Key is also US summer weather.
Wheat futures jumped from 6.03-6.42 following news a drone tried to attack the Kremlin. WN tested 6.47 overnight. SRW is still cheaper than Russia but news Russia sold Egypt old crop wheat near 260 and new crop 255 offers resistance. New US south plains forecast is drier. US north plains is wet. Weekly US wheat export sales are est near 0-250 mt vs 155 last week. Annual US KS wheat crop tour is May 15-18.
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