Headlines:
- GRAIN MARKETS WILL BE CLOSED ON MONDAY, MAY 30TH IN OBSERVANCE OF MEMORIAL DAY
- WEEKLY EXPORT SALES WILL BE RELEASED TOMORROW MORNING AT 8:30AM EST
- SOYMEAL PRICES SOAR TO NEW HIGHS, AS US SUPPLY TIGHTENS
CHICAGO SOYMEAL FUTURES SURGED OVER 4%, HELPED BY CONTINUED WORRIES ABOUT SUPPLY FROM ARGENTINA, THE WORLD‘S TOP EXPORTER, AND A TIGHTER MARKET IN THE US. PRICES FOR THE HIGH–PROTEIN ANIMAL FEED REACHED THEIR HIGHEST LEVEL IN A YEAR–AND–A–HALF. JULY CHICAGO SOYMEAL FUTURES ROSE TO $406.75 A SHORT TON IN LATE–MORNING DEALS, UP 4.6% ON THE DAY. - BRAZIL WHEAT PRICES HIT TWO–YEAR HIGH, AMID SCRAMBLE FOR FEED
WHEAT PRICES IN BRAZIL HIT A TWO–YEAR HIGH – CONTRASTING WITH SOFT VALUES ON INTERNATIONAL MARKETS – AS THE SCRAMBLE BY LIVESTOCK PRODUCERS FOR FEED CROPS, AMID A SQUEEZE ON CORN SUPPLIES, AND EVEN AS FLOUR MILLS BATTLE FOR SUPPLIES OF HIGHER–QUALITY GRAIN.
Summary:
Soybean futures were on fire today with July Beans gaining 31.75 cents and November Beans advancing 26.25 cents. Soymeal futures have been surging domestically in the face of quality concerns over Argentine Soymeal. Fear of reduced supply carried over as strength for the Soybean complex pulling Corn and Wheat along with it. July Wheat was up 2 cents on today and July Corn rallied 7.50 cent. December Corn added 5.75 cent of its own. A shortage of high quality Wheat in Rio Grande do Sul, Brazil is causing millers to import Wheat into the region. The state will need to import 500,000 tons of wheat from Argentina, Uruguay, and Paraguay to keep the mills running, which is 40% more than what they imported last year.
Crude Oil futures rose about a dollar today. Crude Oil inventories were lower than analysts expected leading to a dramatic rise in prices. Crude Oil inventories reflected the largest weekly drop in about 8 weeks. Refiners continue to reduce output and imports were also lower. The wildfires in Canada are responsible for a daily out reduction of about 1 to 1.6 million barrels per day.
The US Dollar was slightly lower today. It has been hovering near resistance at 95.5 for the past 5 days but has yet to truly pull back from its advance over the past three weeks.
