Headlines:
- NOPA Crush will be released Monday, May 16th at Noon EST
- China’s Consumer Price Index rose 2.3% in the month of April, which was steady compared to last month
- Soybean futures soared to a 17-month high, after the US Department of Agriculture forecast stocks
- Robusta coffee futures in London rose to a six month high, buoyed by production concerns in South East Asia
Summary:
Soybean futures soared today in the wake of the USDA Supply & Demand report forecasting lower world stocks because of declining South American production. In the US, ending stocks for the 2015-16 production year were cut by 45 million bushels to 400 million bushels because of higher exports and processing making for a short fall of about 26 million bushels below analyst expectations. The 2016-17 ending stock came in 100 million bushels lower than expected. Fund managers clearly had an idea this would happen as they are sitting on net long positon levels that were last seen two years ago. Beans close off of their intraday limit levels but still posted an impressive gain on the day. July Beans was up 53.75 and November Beans was up 48.
Corn futures held their own today with domestic ending stocks being cut 59 million bushels down to 1.803 billion bushels. Prices jettisoned at the release of the report with July Corn ending the day up 10.75 and December Corn up 9.25. The 2016-2017 ending stock figures for Corn came in at 2.153 billion bushels which was a bit higher than analyst expectations.
Ending stocks for All Wheat say a slight increase of 2 million bushels to 978 million. The 2016-17 ending stock number came in at a very bearish 1.029 billion bushels but Wheat futures was carried by the strength of Soybean futures today. July Wheat close up 4.75 cents.
Crude Oil futures would not be out down today as it too found strength as commodity indices in general were quite strong today. Crude still finished the day below resistance but near to top of the day’s trading range. The Energy Information Administration (EIA) will release their weekly energy stocks report tomorrow morning at 10:30 Eastern.