June Starts With Ags Higher
MORNING AG OUTLOOK
Grains are higher. SN is up 14 cents and near 13.14. SMN is near 397.6. BON is near 46.52. CN is up 4 cents and near 5.98. WN is up 8 cents and near 6.03. KWN is up 6 cents and near 7.96. MWN is up 5 cents and near 7.85. US stocks are higher. US Dollar is lower. Crude is marginally higher and near $68. Coffee, cocoa, sugar and cotton are higher. US House passed debt deal that does not deal with debt. Some hearing US Central Bank could pause rate hike in June and hike later. US jobs opening rose while layoffs dropped in April.
SN is back over 13.00 on some month end buying. Weekly US soybean export sales are delayed until Friday due to Mondays holiday. China is reported buying Brazil and US new crop soybeans. US Midwest 2 week weather forecast is dry. N EU is dry. N China is dry. Brazil farmer has slowed new soybean cash sales as crush margins decline. EU and Asian meal buyers are hand to mouth. Demand has slowed. Competitive protein supplies are higher. US soyoil as feedstock for renewable fuel dropped to 64 pct due to higher supply of used cooking oil. US farmer sales remain low especially new crop.
CN is back near 6.00 on some month end buying. Weekly US corn export sales are delayed until Friday due to Mondays holiday. US Midwest 2 week weather forecast is dry. N EU is dry. N China is dry. Ukraine is dry. Estimates of Brazil crop range 127-137. US domestic corn demand remains strong. US ethanol margins are positive. US corn export demand could slow. US farmer sales remain low especially new crop. To date, Argentina farmer selling is only 12.3 mmt vs 25.8 ly. No word on Ukraine export corridor future.
WN is rallied on some month end buying. Weekly US wheat export sales are delayed until Friday due to Mondays holiday. US south plains rains may not help crop size but could increase diseases and lower quality. N EU is dry. Australia is seeing rains. US wheat export demand is slow. US HRW export prices $110 over July-Sep Russian prices and $75 over Argentina Dec-Jan. No word on Ukraine export corridor future.
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