Ami Heesch

May 6, 2021

 Highlights

  • The next USDA report is scheduled for Wednesday, May 12th at 11 AM CDT.
  • Grain markets: corn up 5-9 cents, beans up 18 cents, meal up 4-5 bucks, oil up 116 points, Mpls/KC ¼ cent higher while Chicago down 4-5 cents.
  • Energy markets are mostly weaker with crude oil down 51 cents at $65.11/barrel.
  • US$ down 331 at 90.978, gold up 9-10 bucks and CD$ up 0.00250 at 0.81685.
  • DJIA up 27 at 34142 & S&P a freckle higher at 4161.

 

Corn

  • Corn prices tickle new contract highs July forward. Fund length estimated at 406k contracts.
  • Weekly export sales estimates from 300 tmt -1.5 mmt.
  • South Korea (NOFI) looks to purchase nearly 276k tonnes of optional origin corn for Jul-Oct shipment.
  • China corn market traded 10 ½ cents.
  • There were no deliveries posted against the May contract.
  • Spreads: N/U 77 ½ inverse, U/Z 22 ¾, N/Z 100, Z/H 3 ¼ carry. 

Outlook: Dry, dry, dry

 

Oilseeds      

  • Soybean values made new contract highs Nov forward on rallies in corn and soyoil. Fund length in soybeans estimated at 192k contracts, meal at 57k  and soyoil at 104k contracts.
  • Soyoil prices made new contract highs Aug-Dec.
  • Deliveries: 7 beans, zero meal and 36 soyoil.
  • Weekly export sales estimates: 0-800 tmt for beans, 50-325 tmt for meal and minus 10 tmt to 25 tmt for soyoil.
  • Palm oil closed 171 higher at 4,215 ringgit on rallies in US row crops and soyoil markets.
  • China’s soy complex was higher with beans up 50-90 cents, meal up 12 bucks and oil up 311 points.
  • Spreads: N/Q 53 inverse, Q/X 112 ¼, N/X 165 ½, X/F 2 inverse, X/H 28 ½ inverse. 

Outlook:   Higher trade on strength in corn and soyoil

 

Wheat

  • Mpls made new contract highs form Jul 21-Jul 22. KC made a new contract high in July 22.
  • Weekly export sales estimates from 100-750 tmt.
  • Deliveries: Mpls 1, KC 212 and Chicago zero.  
  • Bangladesh tenders for 50k tonnes of optional origin wheat with the lowest offer sitting at $324.90 C&F.
  • The US Northern plains are forecast to receive rain showers this weekend.
  • Spring wheat planting progress expected to be near 65-75% complete by next Monday.
  • Spreads: Mpls N/U 4 ¾ carry, U/U 92 inverse, Kansas City N/U 4 ½ carry, Chicago N/U ¾ inverse. Mpls July sits at a 665-cent premium to the KC July. 

Outlook:  mixed trade overnight with a softer tone