Michaela White

Jun 10, 2021

Highlights

  • U.S. unemployment fell for the 6th week in a row, bringing claims to 376,000 in the week ending June 5th.
  • Consumer prices showed an increase of 5% year over year in May, which was the fastest since August of 2008.
  • The USDA’s WASDE report was released today at 11:00 AM Central. The CHS Hedging supply and demand recap is available here.
  • Outside markets as of 2:05 Central: July crude oil at $70.23 up $0.27; Dow futures at 34,503 up 66; U.S. Dollar index at 90.063 down 0.057; gold at $1,894.20 up $1.00.

Corn

Corn traded higher for most of the day today, and prices benefited from lower than anticipated ending stocks on the WASDE report. The ethanol and exports use categories were both raised by 75 million bushels, bringing the new crop carryout to 1.357 billion bushels, below the pre report trade estimate of 1.423 million bushels.

  • Weekly export sales were 189,600 tonnes versus estimates that ranged from 100,000 to 500,000 tonnes of old crop corn; new crop sales were 26,400 tonnes versus estimates that ranged from 200,000 to 600,000 tonnes.
  • Closes: July at $6.98 ¾ up 8; September at $6.37 ½ up 5 ½; December at $6.15 up 5 ¼.
  • Spreads: N/U 61 ¼ cent inverse; N/Z 83 ¼ cent inverse; Z/H 5 ¾ cent inverse.

Oilseeds

Today’s WASDE report was unfriendly for the soybean market, with the USDA lowering crush by 15 million bushels, leading to a 15-million-bushel increase in both old crop and new crop ending stocks. New crop ending stocks were reported at 155 million bushels, above the pre report trade estimate of 146 million bushels, and 140 million bushels on the May report. With the report out of the way, the market will be laser focused on the weather forecasts in the coming weeks until the stocks report is released on June 30th.

  • Weekly export sales were 15,700 tonnes versus estimates that ranged from a reduction of 100,000 tonnes to sales of 200,000 tonnes of old crop soybeans; new crop sales were 105,000 tonnes versus estimates that ranged from 100,000 to 400,000 tonnes of new crop soybeans. Old crop soymeal sales were 136,300 tonnes versus estimates that ranged from 100,000 to 300,000 tonnes and soyoil sales were 3,200 tonnes versus estimates that ranged from a reduction of 10,000 tonnes to sales of 16,000 tonnes.
  • Closes: July at $15.43 ¼ down 19 ¼; August at $15.09 ¾ down 13 ¼; November at $14.59 ¼ up 1 ¼.  
  • Spreads: N/Q 33 ½ cent inverse; N/X 84 cent inverse; X/H 25 ½ cent inverse.   

Wheat

The wheat markets were mixed for a majority of the day, with Minneapolis and Kansas City both finding support and trading mostly higher, and Chicago mixed. The market continues to watch the weather forecasts closely, helping to drive prices as dryness is a big concern. The USDA report was a bit unfriendly to the wheat, with world ending stocks increasing to 296.80 million tonnes, up from 294.49 that the trade was anticipating.

  • Weekly export sales were 325,900 tonnes versus estimates that ranged from 200,000 to 450,000 tonnes.
  • July closes: Chicago at $6.82 ½ up ½; Kansas City at $6.39 ¼ up 3 ½; Minneapolis at $7.75 up 10 ¾.  
  • Spreads: Chicago N/U 5 ¾ cent carry; Kansas City N/U 8 ¼ cent carry; Minneapolis N/U 6 cent carry.