Grains are down hard at noon:
July Corn – 32 cents/bu (6.41)
Dec Corn – 29 3/4 cents/bu (5.42)
July Soybeans -56 1/4 cents/bu (13.92 1/4)
Nov Soybeans -56 1/2 cents/bu (12.86 3/4)
July Chi Wheat – 11 1/4 cents/bu (6.51 1/2)
Cdn $ -0.00645 (80.880 cents)
WTI Crude Oil -2.12/barrel (70.03)
Soyoil is tanking and bringing down the entire soybean complex. Soybeans have extended limits today ($1.50), so they have the potential to fall much farther than where they are now. Watching the markets right now is definitely a gut check.
Comments yesterday from the Federal Reserve yesterday regarding the potential for interest rate hikes has the US dollar on fire, which is typically negative for commodities traded in US currency (like grains).
The export sales report was released this morning for the week ended June 10th. Net sales were within expectations, and the report was uneventful overall, and definitely not enough to bull up the market.
This morning the USDA confirmed the sale of 135,000 tonnes of soybean meal for delivery to the Philippines in 2020/21. Looks like they are buying the dip.
The weakness in the Canadian dollar will help offset the sharp drop off in grain futures, in terms of local basis bids for grains. However, the bottom continues to drop out of old crop soybean basis, as domestic crushers continue to fade bids for bean deliveries.
APK-Inform cut its estimate for Ukraine’s 2021 wheat crop to 27.264 million MT, a 358,000 MT reduction from its previous forecast, but the consultant still expects Ukraine to export 19.75 million MT of the grain.
Drought continues to grow in the U.S. Rains are forecasted for much of the Midwest which should help combat the dry temperatures. Rain makes grain.