Michaela White

Jun 9, 2021

Highlights

  • On Thursday, June 10th at 11:00 AM Central the next WASDE report will be released. The CHS Hedging convenience table with trade estimates for the report is available here.
  • Outside markets as of 4:00 PM Central: July crude oil at $69.75 down $0.30; Dow futures at 34,471 down 115; gold at $1,889.70 down $2.50; US Dollar Index at 90.133 up 0.057.                  

Corn

Corn finished the day mixed after trading both sides of unchanged. Old crop was higher, and new crop was mostly lower. Spread trade ahead of tomorrow’s report was likely giving support to corn.

  • Brazil has reportedly started to receive shipments of imported corn from Argentina following the high prices, and smaller than anticipated crop to be used for animal feed by companies such JBS SA and BRF Brasil Foods.
  • Estimates for the weekly export sales report range from 100,000 to 500,000 tonnes of old crop corn and 200,000 to 600,000 tonnes of new crop corn.
  • Weekly ethanol production increased 33,000 bpd to 1,067,000 bpd, the highest production level of the marketing year. Ethanol inventory increased by 1.4 million barrels to 21.0 million barrels.
  • Closes: July at $6.89 ¼ up 9 ¼; September at $6.30 ¼ up 2 ¼; December at $6.07 ¾ down 1 ¾.
  • Spreads: N/U 59 cent inverse; N/Z 81 ½ cent inverse; Z/H 5 ¾ cent carry.

Oilseeds

Soybeans were lower today, as the market seems to be in risk off mode ahead of tomorrow’s USDA report. Additionally, pressure from potential rain in the Northern corn belt added weakness as the weather has been a main focus of the market.

  • Estimates for the weekly export sales report range from a reduction of 100,000 tonnes to sales of 200,000 tonnes of old crop soybeans and sales of 100,000 to 400,000 tonnes of new crop soybeans. Old crop soymeal sales estimates range from 100,000 to 300,000 tonnes and soyoil estimates range from a reduction of 10,000 tonnes to sales of 16,000 tonnes.
  • Closes: July at $15.61 ¼ down 18 ¾; August at $15.22 ¼ down 17 ¼; November at $14.48 ¼ down 8 ¾.
  • Spreads: N/Q 38 ¾ cent inverse; N/X 113 cent inverse; X/H 25 ½ cent inverse.  

Wheat

The wheat markets were mostly lower today, with Minneapolis continuing to be the biggest loser. After the September contract dipped down close to its 20-day moving average at $7.41 ¾ it turned higher. Additionally, the contract was within a penny of closing the gap left on the chart. Kansas City wheat spent the majority of the day lower, before closing mostly higher.

  • Estimates for the weekly export sales report range from 200,000 to 450,000 tonnes of new crop wheat.
  • July closes: Chicago at $6.80 ½ down 4 ½; Kansas City at $6.34 ½ up 2; Minneapolis at $7.61 down 10 ¼.  
  • Spreads: Chicago N/U 6 ¾ cent carry; Kansas City N/U 7 ¾ cent carry; Minneapolis N/U 5 ¾ cent carry.