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USDA Report Day. Prices Easier.

USDA report day. Grains are lower. SU is down 1 cent near 8.57. CU is down 1 cent and near 3.27. WN is down 4 cents and near 4.82. US stocks are lower. US Dollar is higher. Crude is lower. Gold is higher. China passed new Hong Kong security laws. Tension between US and China could jeopardize trade deal.

For the month, SRW Wheat prices are down roughly 43 cents; HRW down 42; HRS down 22; Corn is down 5 cents; Soybeans up 9; Soymeal down $3.00, and; Soyoil up 15 points.

Chinese Ag futures (Sep) settled up 41 yuan, down 5 yuan in Corn, up 10 in Soymeal, up 10 in Soyoil, and up 26 in Palm Oil. Malaysian palm oil prices were up 13 ringgit at 2,354 (basis September) at mid-session supported by rival oils, Asian equities.

Today’s USDA report should show US corn, soybean and wheat June 1 stocks below last year. Key will be corn. There are rumors the corn number could be below trade average due to lower 2019 crop. US corn acres could be below USDA March guess but soybean acres could be above.

There were no KC wheat, corn or soybean July deliveries. There were 10 soymeal and 2,402 soyoil deliveries. There were 151 SRW and 487 MLS deliveries.

USDA rated the US corn crop 73 pct good/ex. Best crops are in IA, MN, SD and WI. USDA rated the US soybean crop 71 pct good/ex. Best crops are in the west. US winter wheat harvests 41 pct done. USDA dropped spring wheat ratings to69 pct good/ex. US farmer has increase cash sell orders above the corn market.

Overnight rains were in MN, WI and MO. Showers and thunderstorms look to bring moderate rainfall to the eastern sections of the Midwest over the next 2 ½ to 3 days, then dry weather looks to take over. The GFS model for the 6 to 10 day forecast still indicates some rains to fall in this time frame with moderate amounts however, these rains are now indicated to fall mainly in the northern ½ to 2/3rd of MN, WI and MI. Conditions are still expected to be good across much of the Corn Belt, Delta, and southeastern states, with some pockets that are drier than preferred in the Corn Belt due to the erratic nature of the thunderstorm activity.

On Monday, funds were net buyers of 11,000 contracts of SRW Wheat; net bought 33,000 Corn; bought 2,000 Soybeans; net sold 2,000 lots of soymeal, and; bought 4,000 Soyoil. We estimate Managed Money net short 50,000 contracts of SRW Wheat; short 283,000 Corn; net long 34,000 Soybeans; net short 52,000 lots of Soymeal, and; short 7,000 Soyoil.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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