There will be no Ag markets trade on Sunday evening or Monday in the day session…..trade will resume Monday evening at 7PM Chicago Time. Equity markets were on the defensive on fears that US economic support measures may get scaled back sooner than expected.
Corn
The corn market traded lower most of the session on profit taking ahead of the long holiday weekend. The new crop months were weaker on improving weather conditions for growers to be able to get the crop in the ground. The July contract closed down 4 ¾ cents at $6.57 ¼ and the December closed up 1 ¾ cents at $5.36 ½.
Planting progress is expected to be near 85% complete by this weekend. This compares to the 5 year average of 90%.
There is talk we could see a 1.0-1.5 million reduction in corn acres this year.
Tuesday’s report will show the first of this year’s crop conditions. In past years (2008/2009 & 2011) the first conditions report showed the G/E category between 63-70%.
Spreads hang in there with the N/U at a 90 cent inverse, N/Z at a 120 ¼ inverse and the Z/N at a 26 ¼ cent carry.
Oilseeds
The soy complex was weaker on profit taking and ideas that there could be additional acres slated for soybeans. Old crop stocks remain tight with decent soybean and soymeal sales on a regular basis. The July contract closed down 23 ¼ cents at $14.76 ¼ and the November contract closed up 4 ¾ cents at $12.47 ¾.
Nearby months saw weakness on profit taking….basis depreciation and weaker outside markets.
The November contract drew support from weakness in the N/X spread (227 ¾, down 28 ¾ cents today).
There were rumors today that China may look to cancel US soybean purchases.
The canola market traded lower in sympathy with the US soybean market. The July closed down 6.70 at $635.70.
Wheat
The wheat market traded lower in sympathy with the row crops and outside influences. There are concerns about the HRW crop and talk is beginning to surface about quality issues in the SRW crop from a plethora of moisture this spring. Some think that the rains will only amount to harvest delays. The July contract closed down 5 ¾ cents at $6.97 ½ in Chicago, down 9 ¾ cents at $7.44 ¾ in KC and down 8 ¼ cents at $8.05 in Mpls.
The USDA announced the sale of 180,000 tons of US SRW to China for Aug-Dec shipment.
Australia and Russia received beneficial moisture this week, although there are parts of Russia that are still in much need of moisture. This area is a spot to keep an eye on as they get closer to harvest in a couple of months.
Spring wheat planting delays are expected on account of plenty of moisture in the Northern Plains area this past week and chances for rain again over the weekend.
Financial
A strong Durable Goods Orders number this morning was not enough to overcome the uncertainty surrounding Fed policy, leading to generally weaker equity markets today. The S&P 500 is headed toward its first weekly loss in five weeks. Ahead of the close, the Dow was up 8 points, the S&P was down 2, and the NASDAQ was down 4. 10-year Treasury yields were down 1 bp at 2.01%. The yen continued to strengthen against the dollar, trading down 1.08 to 100.94.
Durable Goods orders were up 3.3% in April, besting expectations for a 1.1% increase. The German May business climate survey from the Ifo Institute was 105.7, up from 104.4 in April, and better than expectations of 104.6.
Grain futures on the CME and all Premier offices will be closed Monday 5/27 in observance of the Memorial Day Holiday. The CME future markets will reopen Monday night at 7:00 pm as normal.
HAVE A PREMIER DAY The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by Premier Cooperative, Inc. This report is provided for information purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities here in.
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