Headlines:
– WEEKLY EXPORT INSPECTIONS WILL BE RELEASED MONDAY, JUNE 6TH AT 11:00AM EST
– THE USDA WILL RELEASE THEIR MONTHLY SUPPLY AND DEMAND REPORT NEXT FRIDAY, JUNE 10TH AT NOON EST
– RAIN WORRIES LIFT PARIS WHEAT FUTURES TO FIVE–MONTH HIGH
Summary:
US job growth appears to have hit the brakes according to news media outlets. Across the newswires headlines read “the US economy created the fewest number of jobs in more than five years”. The main culprits according to the news were a strike by Verizon and a drop in goods producing employment. The buzz now is that the Federal Reserve may find it challenging to justify a rate increase. A little known fact is that the government manipulates the numbers to fit their agendas. Also, they are banking on the masses failing to take enough personal initiative to understand what the numbers actually mean. On the US Department of Labor’s website its Bureau of Labor & Statistics show the “official unemployment rate” to be 4.7% for May 2016. Read down a few line and the total unemployment rate with some of the components that they removed for the “official rate” is reported at 9.7% (http://www.bls.gov/news.release/empsit.t15.htm). If you choose to do some additional due diligence you might find that the true unemployment rate might be as high at 25-30%. The measurements used for determining the unemployment rate in our current economy is the not the same as it was decades ago.
The grain and equity markets did not initially respond well after the unemployment numbers were released. After posting some gains in the overnight session Corn futures rose a bit at the start of the trading day then sold off during the middle only to find itself finishing strong into the close. July and December Corn finished in positive territory up 3.75 and 3.25 respectively. Soybean futures were mixed today. Both July and November Beans were up premarket and both dropped into the middle of the day. Then they diverged as the day progressed. The November contract end the day up 6 cents while the July contract surrendered 10 cents. The weakness in the nearby contracted was attributed to profit taking. Wheat futures finally broke through resistance at 487 gaining 10.75 cents to close at 496.25. The continued weather events in Texas/Midwest has changed the Wheat crop narrative a bit.
Soybean export sales were strong for the new crop marketing year and right in the middle of expectations for the old crop. Commitments are at 100.7% of the USDA’s export total. Wheat sales well exceeded estimates for the old crop marketing year and was in the middle of analyst’s expectations for the new crop year. Commitments are at 97.6% of the USDA’s total. Corn sales were strong for the old crop and weak for the new crop. The old crop sales number was the 5th largest total for the marketing year. Commitments are at 98% of the USDA’s total.
