Written Commentary
Grains are mixed. SN is down 2 cents near 8.62. CN is up 2 cents and near 3.19. WN is up 2 cents and near 4.76. Nearby corn supported by spread traded. US stocks are mixed. US Dollar is lower. Crude is lower. Gold is higher. This week is first notice for July contracts, USDA acreage and June 1 stocks report, month end and quarter end.
Chinese Ag futures (Sep) settled up 100 yuan, up 12 yuan in Corn, down 13 in Soymeal, down 132 in Soyoil, and down 156 in Palm Oil. Malaysian palm oil prices were down at 2,325 ringgit (basis September) on cheaper rival oils, stronger ringgit.
US Midwest will see showers and thunderstorms with moderate rainfall to the eastern region through Wednesday of this week; activity then looks to taper off just a few spotty showers/storms for Thursday. Temps this week will run near average and then warm to above average for the weekend and into early next week. The 6-10 day forecast sees ridging to build in and bring limited rains to much of the region. The 11-16 day outlook sees some weak ridging to bring average to below average rainfall to the Midwest with temps to run above average.
Tuesday, USDA will release estimates of US June 1 stocks and US 2020 acres by crop. Trade estimates US June 1 soybean stocks near 1,392 mil bu versus 1,783 last year, June 1 corn stocks near 4,959 mil bu versus 5,202 last year and US June 1 wheat stocks near 987 mil bu versus 1,080 last year.
Trade also estimates US 2020 soybean acres near 84.8 million versus USDA March guess of 83.5 and 76.1 last year, US 2020 corn acres near 95.1 million versus USDA March guess of 97.0 and 89.3 last year and US 2020 wheat acres near 44.7 million versus USDA March guess of 44.7and 45.2 last year.
On Friday, funds net sellers of 12,000 contracts of SRW Wheat; net sold 8,000 Corn; sold 5,000 Soybeans; net sold 4,000 lots of soymeal, and; sold 3,000 Soyoil. We estimate Managed Money net short 61,000 contracts of SRW Wheat; short 316,000 Corn; net long 32,000 Soybeans; net short 50,000 lots of Soymeal, and; short 11,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures down roughly 9,700 contracts; HRW Wheat up 115; Corn down 27,300; Soybeans down 21,900 contracts; Soymeal up 2,200 lots, and; Soyoil down 6,300.
There were no changes in registrations—Registrations total 11 contracts for SRW Wheat; ZERO Oats; Corn ZERO; Soybeans ZERO; Soyoil 3,495 lots; Soymeal 511; Rice 106; HRW Wheat 17, and; HRS 488.
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