Grains closed up:
July Corn + 7 1/2 cents/bu (7.64 1/2)
July Soybeans +11 3/4 cents/bu (17.40)
July Chi Wheat + 3 3/4 cents/bu (10.88 1/4)
Cdn $ -0.00185 (79.63 cents)
WTI Crude Oil +2.70/barrel (122.11)
Soybeans were the star of the show today as they moved higher on oil prices (tight energy supplies), and technicals. Today, July soybeans touched a contract high at $17.58. The most-active CBOT soybeans record was set on September 4, 2012 at $17.89/bu.
July soybeans finished 77 ¾ above the August contract, reflecting aggressive commercial demand.
Corn futures moved higher today supported by ethanol news, the Ukrainian-Russian war, and technicals. Corn futures surpassed their 20-day moving average for the first time in 3 weeks, evoking some technical support.
The EIA report was released today and showed that commercial crude oil stocks increased by 2 million barrels to 416.8 million barrels, while ethanol stocks increased 0.7 million barrels to 23.6 million. Ethanol production decreased 31 thousand barrels per day to 1,039 thousand barrels. U.S. ethanol exports in April reached their 3rd highest on record (since Feb 2018) including the highest volume to Canada since 2014, and the highest to Brazil since March 2020.
Chats with Turkey and Russia continue to make headlines as they arrange plans for a grain shipment corridor in the Black Sea. Ukraine has already reported that Russia has stolen 600,000 tonnes of grain from them, which implies that any shipments coming out of Ukraine may face the same demise. This is devastating news for Ukraine, but Russia holds onto their claim that they won’t use Ukraine’s exports to their advantage if the West drops sanctions. This tumultuous saga is propping up both corn and wheat as we move forward.
The export sales report is due out tomorrow for the week ended June 2nd, and estimates are below.
Conab increased their corn and soybean production, while knocking down soybean exports.
The USDA WASDE report is due out on Friday, estimates are below.
Funds were thought to have been all buyers today.