Morning Commentary

July corn up 2 ¼ at $3.335

July beans dwn ¾ at $8.67

The DOW is up

USD is stronger

Crude oil down $.78 at $38.77

Good morning,

Corn bulls are hoping they can add to last week’s +6 cents gains. We start off this afternoon with the USDA showing U.S. corn planting 96% to 98% complete and ahead of schedule. At the same time, many suspect last weeks’ 74% GD/EX rating could slightly improve and remain better than normal. Then Thursday we have the USDA’s monthly supply and demand report. Bears are pointing to further reductions in corn used for ethanol. Bulls are hoping to see some type of reduction in supply. Globally, there’s been some talk circulating that Chinese demand at corn auctions has been strong but many end-users are struggling with the quality being offered, especially those to the South. Bulls would like to believe rumors that the Chinese could opt to buy and ship U.S. supply direct to that area rather than rail the lesser quality which could be used for ethanol more to the north. The trend for July corn is positive. Stable action above 328.75 would support a rally to 340. A close under 323.25 signals a retrenchment phase.

Soybean bears are eager to find out how many U.S. acres will have gotten planted in 2020. There are some wide varying guesses flying around inside the trade. Bulls are happy to see the Chinese last week buying U.S. soybeans despite the perceived escalating political tension between the two nations. The soybean market gained +27 cents last week on the Chinese demand. Today, the trade will be looking for the USDA to show 83% to 87% of the U.S crop is now planted and running well ahead of schedule. There’s also talk overall crop conditions could improve from last weeks 70% rated GD/EX. Globally, the recent depreciation of the U.S. dollar has provided a nice tailwind, we have to hope that trend continues into harvest and the Chinese keep buying. The trend for July beans is positive. Stable action over 855.25 will fuel a drive to 895-900, perhaps 920. Closing under 846.25 undermines the outlook.

The Justice Department is formally demanding information from the country’s four biggest meatpackers over potential antitrust violations, according to a person familiar with the matter, deepening scrutiny of an industry that’s been riled by shutdowns due to the coronavirus. The department’s antitrust division sent civil investigative demands, which are akin to subpoenas, to the companies and is talking with state attorneys general about the probe after a group of states called for an investigation, said the person, who declined to be named because the inquiry is confidential. The companies — — Tyson Foods Inc., JBS SA, Cargill Inc. and National Beef Inc. — control more than 80% of the U.S. beef processing market.(Source:Feedstuffs)


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