Wheat rallied today:
July Corn -1 cents/bu (7.30 1/4)
July Soybeans + 39cents/bu (17.29 1/4)
July Chi Wheat + 17 cents/bu (10.58 1/4)
Cdn $ +0.00340 (79.500 cents)
WTI Crude Oil +1.61/barrel (116.87)
A quiet afternoon in the commodity markets as futures remained relatively close to where they were at noon.
Wheat was able to rebound after an exaggerated decline yesterday. After discussions of Ukrainian export potential hit the headlines yesterday, sellers flooded the market depressing both corn and wheat prices. Today, we are seeing an uptick on the price of commodities, reflecting that yesterday’s movement may had been overstated as no resolutions have even come to fruition yet. That being said, corn struggled to get its footing despite wheat and soybeans positive swings and slipped slightly lower due to technicals.
The export sales report is expected to be released tomorrow morning (it is usually Thursday mornings but was pushed back due to the American Holiday Monday). Estimates for the week ended May 26th are shown in the chart below.
North Dakota weather has put a dead stop to corn planting, leaving 1 million corn acres unseeded. Whether those acres will be left prevent plant or will be converted to soybeans is the real question now.
The EIA report (normally a Wednesday report) was released this morning for the week ended May 27th. Commercial crude oil stocks decreased 5.1 million barrels to 414.7.Ethanol stocks decreased 0.8 million barrels to 23 million barrels while ethanol production increased 57 thousand barrels per day to 1,071 thousand barrels per day. Fairly positive report for the oil market as crude oil stocks fell more than 3% to a 20-wk low as last week's implied use was a post-pandemic best. This helped to prop up the crude oil futures and by extension, the soybean market (oilseeds).
This morning we also saw a peculiar flash sale: 352,000mt of soybeans to Pakistan (55,000 for 2021/22 and 297,000 for 2022/23). Pakistan is a very uncommon buyer of U.S. commodities, and only amounts to 1% of the cumulative sale volume annually. This non-Chinese demand is enough to excite traders.
Funds were thought to be mostly buyers today.