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
– SOCGEN UPBEAT ON PROSPECTS FOR SOYBEAN, HARD WHEAT FUTURES
SOYBEAN AND HARD WHEAT FUTURES LOOK UNDERVALUED – BUT NOT FOR CONTRACTS THIS SIDE OF 2017, SOCIETE GENERALE SAID, FORECASTING THAT INVESTORS MAY HAVE ALREADY OVERHEGGED SHORT–TERM PRICE PROSPECTS.
Summary:
Fund Managers stepped up their efforts in buying Soybeans propelling prices much higher today. Wheat and Corn futures were pulled along with it but Corn gave back all of is gains by the end of the trading day. Nearby Soybean futures found legs as news of drought and late season rain appears to be responsible for lowered crop expectations in Brazil and for causing the Soybean and Meal export window to remain open longer than normal. Meal futures turned up again in a massive way taking Beans with it. The Corn market was not able to sustain its initial efforts to advance. This morning’s ethanol data was thought to be supportive of Corn prices with weekly production number up from last week along with a tightening of inventory stocks but that was not enough today. Wheat futures did manage to finish the day strong in conjunction with a surge in the Soybean complex. The massive flooding in Texas from late season rain (with more in the forecast) is causing delays in harvesting and the potential for quality issues is also raised. Nearby Corn was flat and the deferred contract was down 1.25 cents. Nearby Beans rose a whopping 44.25 with November Beans only rising 11.75 by comparison. July Wheat was up 9.25 cents.
Initial reports showed that OPEC failed to agree to a clear oil-output strategy today with Iran maintaining its position of raising its own production and Russia not even involved. Like yesterday Crude was down about a dollar intraday but managed to recover by the end of the day. The Crude futures apparently found some solace Saudi Arabia promising not to flood the market and appears to be trying to patch relations within the organization.
Tensions between the Sunni-led kingdom and the Shi’ite Islamic Republic soured over the course of previous OPEC meetings. Front month Crude Oil futures look to end the day flat.