July corn up 1 ¼ at $3.2175
July beans down 2 ¼ at $8.4625
The DOW is up
USD is weaker
Crude oil down $.30 at $32.51
Corn bulls are hoping to see continued growth in gasoline demand reported by the EIA today. Export sales data is delayed a day because of the holiday so we will learn a bit more on that front tomorrow. Weather seems to be mostly a non-event with a little bit of the rains reduced in the forecast, which is probably welcomed by many producers. The trade is still heavily debating U.S. planted corn acres with most guesses falling between 94 and 96 million vs. the USDA’s current 97 million forecast. The trend for July corn is neutral. Closing outside 309-328.75 would provide fresh trending targets. Non-index funds are estimated to be short 293,000 corn on a futures and options basis.
Soybean traders continue to debate U.S. and Chinese political relations and longer-term U.S. weather. There are also some talks and concern that China might be front-loading their nearby purchases as they prepare for a standoff with U.S. leaders over Hong Kong autonomy. The trend for July beans is neutral. Closing outside 834.75-864.25 would provide fresh trending targets. Non-index funds are estimated to be long 1,000 beans on a futures and options basis.
The Iowa Department of Agriculture & Land Stewardship is launching a disposal assistance program to help pork producers who are unable to harvest pigs due to COVID-19 supply chain disruptions, Iowa secretary of agriculture Mike Naig announced. Iowa State University estimates that, as of mid-May, approximately 600,000 pigs in Iowa were unable to be harvested. The department is offering producers $40 per approved animal to help cover some of the disposal costs for market-ready hogs (weighing at least 225 lb). The disposal assistance funding will be made available to Iowa producers in at least three rounds. Each approved applicant will receive funding for at least 1,000 animals and up to 30,000 animals per round, depending on the number of applicants.
Chinese commodities trader COFCO International said on Wednesday it will use its 12A terminal in Brazil’s Santos port to move sugar instead of grains beginning in July and through the end of the year. COFCO, which manages four sugar and ethanol facilities in Brazil, said the change was a result of higher sugar production in the country this year. In a statement, it said it plans to keep its Brazilian corn export program by using third party infrastructure. Brazil is sharply ramping up sugar production this year, with some analysts expecting output to grow by as much as 10 million tonnes, as a result of falling prices and demand for ethanol. COFCO said its 12A terminal in Santos, Latin America’s largest port, is currently being used to move soybeans. It would normally be used to move corn in the second half of the year, when Brazil’s largest corn crop is harvested. (Source: Reuters)