Headlines:
– WEEKLY EXPORT SALES WILL BE RELEASED FRIDAY MORNING AT 8:30AM EST
– INITIAL JOBLESS CLAIMS & US UNEMPLOYMENT WILL BE RELEASED FRIDAY MORNING AT 8:30AM EST
– THE USDA WILL RELEASE THEIR MONTHLY SUPPLY AND DEMAND REPORT NEXT FRIDAY, JUNE 10TH AT NOON EST
– ANDERSONS ATTACKS FALCONE, IN DEFENCE AGAINST $1.4BN BID
– PRESSURE RISES ON BRAZIL TO IMPORT WHEAT – FROM THE US
PRESSURE FOR BRAZILIAN WHEAT IMPORTS IS INCREASING – PARTICULARLY FROM ORIGINS OUTSIDE SOUTH AMERICA – EVEN AS RAINS CONTINUE TO IMPROVE PROSPECTS FOR THE NEXT HARVEST. “LOW SUPPLY AND GOOD DEMAND” FOR WHEAT ARE CONTINUING TO DRIVE BRAZILIAN WHEAT PRICES HIGHER, RESEARCH INSTITUTE CEPEA SAID, REPORTING VALUES IN PARANA, THE TOP PRODUCING STATE, ENDING MAY AT A FRESH TWO–YEAR HIGH OF R$834.69 ($230.71) A TONNE. THE INCREASE TOOK THE RISE IN PARANA PRICES LAST MONTH TO 9.0%, WITH WHEAT NOW 25% MORE EXPENSIVE THAN A YEAR AGO. IN RIO GRANDE DO SUL, THE SECOND–RANKED WHEAT PRODUCING STATE, PRICES ROSE BY 13.3% LAST MONTH TO $778.36 ($215.14) PER TONNE, UP 29% YEAR ON YEAR.
Summary:
Producers had planted 94% of the intended Corn acreage as of last Sunday. That was the same percentage for this time last year. The eastern Corn Belt is behind the national average trailing in the range of 7-14%. Alternatively, in the Mid-West areas such as Iowa, Minnesota, and Missouri had pretty well completed their Corn planting by last Sunday. Corn emergence was at 78% versus 81% last year. The first Corn condition indicated that 74% of the Corn was rated good to excellent which was is unchanged from the initial 2015 rating.
Producers planted 73% of the intended Soybean acreage as of last Sunday versus 68% last year. Soybean emergence was at 45% versus 44% the previous year. Like Corn some of the slowest plantings were in the eastern Corn Belt region. The Soybean condition rating won’t be released until next week on Monday.
In a surprise move, grain futures moved up sharply today reversing losses from yesterday. Wheat Futures led the way initially during the overnight session but its advance would soon be matched by Corn and eclipsed by Beans. Better than expected manufacturing data set the stage pulling the equity markets well off of its lows. Crude Oil prices also reversed off of what was looking like the start of a damaging correction. Speculation that OPEC was open to holding talks about curbing production helped to stabilize prices.
July and December Corn were up 9 & 8 cents respectively. Both posted a huge ranging outside reversal bar that rallied into the close. July and November Beans traded in a similar fashion posting gains of 21.75 and 12.25. July Wheat futures finished squarely in the middle of what has been a long standing trading range all year long. It gained 9 cents on the day.
