Written Commentary
Ag Market View for June 2.23
June 2, 2023
MORNING OUTLOOK
Grains are mixed on low volume. SK is up 1 cent and near 15.23. SMK is near 480.4. BOK is near 61.53. CK is unch and near 6.75. WK is down 4 cents and near 7.72. KWK is down 1 cent and near 8.86. MWK is up 1 cent and near 9.25. US stocks are lower. US Dollar is higher. Crude is lower. Gold, silver, copper, coffee, sugar and cotton are lower.
SK held support near 15.16. SMK held support near 472. BOK found resistance near 62.50. 2 week Argentina weather forecast is dry. Argentina economy and farm community are taking a hit with high inflation, interest rates and lower farm income due to lower crops. BAGE lowered Argentina soybean crop rating to 9 pct G/E vs 13 last week. Rosario est crop near 34.5 mmt vs USDA 41.0. Brazil farmer slowing cash sales as they try to dry down crop from 20 pct moisture to 13. Vessel line up growing waiting for beans. Palmoil futures are higher on demand hopes.
Corn futures remain in a tight range. Funds are unwilling to give up on longs despite slow US export and ethanol demand. BAGE lowered Argentina corn crop rating to 11 pct G/E vs 20 last week. Rosario est crop near 42.5 mmt vs USDA 47.0. 68 pct of Brazil first corn crop is pollinating in warm temps. S Brazil remains dry. Some est Brazil corn crop near 123.0 mmt vs USDA 125.0. Brazil is out of the corn export market until June. Black Sea shipped 1.0 mmt corn to China in both Dec and Jan. Some feel Putin will extended Ukraine corridor export deal given shipments to China. CK holding key support from 6.72-6.76.
Wheat futures are mixed with KC and MLS gaining on Chicago. Russia continues to offer wheat export prices into the summer below US and other exporters. For the week, WK is down 19 cents, KWK down 7 and MWK up 10. Monday is a CBOT holiday. Next week is USDA Outlook conference and first look at US 2023/24 supply and demands. US south plains remain dry.
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