Written Commentary
MORNING AG OUTLOOK
Grains are mixed to mostly lower. Oats near season low and 3.00. US stocks are higher. US Dollar is unch but technical suggest double top. Crude is near $81. USDA acreage and stocks report Friday.
SN is near 11.74. SMN-SMU is +23. Heavy NW US Midwest rains offers support. Floods slowing US crush. Old crop soybean export commit were better than expected but new crop are near record low. USDA rated US crop down 3 pct to 67 pct G/E. US soymeal export commit is record high. Trade est US soybean acres near 86.75 million vs 86.51 in March. Trade also est June 1 stocks at 962 vs 796 ly with most stocks off farm. Dalian soybean futures were higher, soymeal, palmoil and soyoil were lower. Palmoil exports lower than expected.
CN is near 4.30. Corn futures dropped on increase export competition from South America starting in July. Trade afraid to add weather premium despite talk of lower Brazil and Argentina crop and continue dryness in Mexico and S Midwest. N Midwest is wet. USDA rated US crop down 3 pct to 69 pct G/E. Trade est US corn acres near 90.35 million vs 90.03 in March. Trade also est June 1 stocks at 4,873 vs 4,103 ly with most stocks on farm. Dalian corn futures were higher and 8 month high.
WN is near 5.51. WN-WU widened to-18. KWN-KWU remains near -5. MWN-MWU is -6. Global harvest pressure has weighed on futures. EU, Ukraine and Russia are lowering export prices to find demand also offered resistance to futures. Egypt and Algeria are tendering for wheat. 40 pct US winter wheat crop is harvested. Trade est US wheat acres near 47.65 million vs 47.49 in March. Trade also est June 1 stocks at 684 vs 570 ly with most stocks off farm.
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