Written Commentary
SOYBEANS
Soybean futures ended higher. SN had an inside da finding support near the 20 DMA at 16.40. Talk of higher demand for US soybean exports and new US inflation data helped rally soybeans. There were no new US soybean export sales announced today. In April, USDA lowered US 2021/22 soybean carryout to 260 mil bu due to higher exports. US is competitive to buyers June forward. China July forward coverage is only 10-15 pct. Market is having trouble trading over 17.00 due to fact USDA dropped China imports to 91 mmt, Wet US east Midwest weather could add soybean acres if corn cannot get planted on time. Soyoil futures is supported by higher sunoil and rapeseed oil prices. Soyoil also supported by fact US will allow E15 this summer.
CORN
Corn futures traded higher. CN and CZ made new highs. CN is supported by new US CPI inflation data and talk of new US corn export demand. US farmer is said to be 20-30 pct sold of new crop corn at lower values. Some feel they may now wait until more is known about US 2022 crop before increasing sales. West US Midwest ethanol plant bids hit 8.00. Weekly EIA ethanol production is expected to be about unchanged than last week’s level with a draw in ethanol stocks. EPA action could add near 25-45 mil bu to the old crop corn grind for ethanol, but reduced miles driven due to high gasoline prices is expected to limit the bullish impact from this action. US corn planting was reported at 2% complete versus 3% average. Delta states were; LA 90 vs 95 ave, MS 34 vs 54 ave and AR 16 vs 32 ave. USDA did not report any new corn acres planted last week across the heart of the US central Midwest. CZ continues to make new high on lower US acres. Lower Ukraine corn exports and wet conditions in US east Midwest helped CN rally to new highs today. USDA did not announce new US corn export sales today.
WHEAT
Wheat is wheat. New buying linked to a 2 week dry and warm US south plains forecast and increase in US CPI inflation data. MWN dropped below KWN as a strong 20-22 inch winter storm is moving across parts of US spring wheat areas. For some this is the first moisture they have seen in 2 years. Egypt tender rallied Matif wheat futures. Egypt is looking for either EU or Russia wheat. Recently, Russia pledged to Egypt that they will get the Russia wheat promised to them. US 2022 Winter wheat crop ratings were 32 pct G/E vs 30 last week. Largest winter wheat rating improvements were in OR 51 vs last week, OH 62 vs 54 lw, OK 29 vs 22 lw. KS G/E increased from 32 to 34, while the P/VP rating increased from 30 to 32.
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