Written Commentary
MORNING AG OUTLOOK
Grains are lower. SN is down 6 cents and near 14.08. SMN is near 425.2. BON is near 51.72. CN is down 3 cents and near 5,97. WN is down 6 cents and near 6.35. KWN is down 10 cents and near 7.73. MWN is down 10 cents and near 8.02. US stocks are higher. US Dollar is higher. Crude is unch but below $75. Gold, silver, copper, sugar and cotton are higher.
July soybean futures continue lower. Most of the drop was due to long liquidation due to record Brazil soybean crop being sold into market which dropped Brazil soybean export prices. US. China is buying only Brazil for now. This could drop US exports from USDA last guess. Funds liquidating long soymeal due to drop in non US global demand. Palmoil is lower on talk of higher Indonesia export supplies. Funds continue to unwind SN-SX bull spread.
July corn futures continue lower due to talk of lower Brazil summer corn prices reducing final US exports. Weekly US ethanol production was down 5 pct. Today’s US export sales could be disappointing after China cancellation of open sales. US gulf corn prices dropped 10 cents. There has been no new China sales of US corn now for 2 weeks. This weekend US Midwest temps could drop below normal. This should be the last of cool temps with next week’s temps trending more toward normal. CN is near 9 month low. CZ is near 15 month low. Funds continue to unwind CN-CZ bull spread.
July KC wheat futures also continues To trade lower due to rains across the dry areas of US HRW growing areas. Managed funds net short is near 2016 record. MWN dropped on a bearish Canada acreage report although report was taken in December before spring turned wet and cool. WN near 25 month low. MWN made new contract low. EU wheat export demand is slow with end stocks reported to be high and near 19 mmt. More talk of Ukraine corridor deal will end May 18.
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