The commodity complex was a sea of red today on massive fund selling and talk of higher inflation. Fundamentals are still supportive to the markets.
- USDA announced a sale of 680,000 mt of new crop corn to China this morning (26.77 million bushels).
- Barge traffic has been stopped on the Mississippi River because of a structural crack on the I-40 bridge in Memphis, TN. There is no timeline for re-opening currently. This could cause a significant problem for the movement of grains and other goods.
- The Dow was turned around today and was up 549.69 pts at 34,137.35 as of 2:30 p.m.
- The energy markets were lower with crude down 2.31 at 63.77 as the pipeline reopened last night after a cyber-attack.
- US$ lower at 90.68, S&P futures are 45.50 pts higher at 4,104 pts, gold is $3.30 higher at $1,824.40 per ounce, and July lumber slightly lower at $1453.
The corn market closed sharply lower with July corn down the limit this morning, traded off the limit for a short time, then closed limit down.
There will not be expanded limits tomorrow since July was the only contract that was limit down.
- The reported corn sales for the week ending May 6th were the largest new crop sales total of the year at 2.083 mil. bu.
- Estimated fund selling in corn today at 50,000 contracts sold.
- Closes: July at $6.74 ¾ down 40 cents, December at $5.58 ¼ , down 34 ¾ cents.
- July support at 6.62 ½ , resistance at 7.15, contract high is 7.35 ¼ . December support at 5.37 ¼ , resistance at 5.94 ½ , contract high is 6.38.
- Spreads: K/N 44 ¼ inverse, N/U 87 ¼ inverse, U/Z 24 ¾ inverse, Z/H 5 ½ carry.
The soybean market followed corn sharply lower
- The combined soybean sales were at the very low end of expectations. This is the 4th lowest total of the marketing year. Bean commitments are at 98.9% of the USDA export total.
- Soybean meal plunged lower and was the biggest loser today based on percentages. Soyoil was lower as well.
- Estimated fund selling in beans at 38,000 contracts, Soymeal sold 19,000 and Soyoil sold 5,000.
- Closes: July at $16.42 ½ up 27 ¾ cents, November at $14.43 ¾ , up 12 ¼ cents.
- Spreads: K/N 28 ¼ inverse, N/Q 61 ¾ inverse, N/X 187 ½ inverse, X/F 1 ½ inverse.
The wheat markets were lower across the board with some rain forecast for the southern and central plains.
- SovEcon (Russia) has raised its forecast for Russia’s 2021 wheat crop to 81.7 million tonnes due to a larger than expected harvest area.
- Estimated fund activity in wheat showed 18,000 contracts sold today.
- July closes: Mpls at $7.41 ¼ , down 24 ¼ cents, KC at $6.57 ¾, down 33 cents, Chicago at $7.01 ½ , down 28 ¼ cents.
- Spreads: Mpls K/N 17 ½ carry, Kansa City K/N 8 carry, Chicago K/N 25 inverse.