Morning Comments May 24, 2018
Thursday, May 24, 2018, 8:05 AM
Submitted by: Landus Cooperative
Corn up 2-2 ½ cents
Soybeans up 9 ¼ - 9 ¾ cents
Weather concerns continue in much of the U.S. corn belt that remains supportive to both corn and beans. A high pressure ridge will limit moisture events over the Plains and the western portions of the Midwest over the next 10 days. Meanwhile, temperatures in the 90’s will blanket the HRW Belt and portions of the Midwest this weekend.
Corn and wheat futures make new highs for the move while December corn tested the previous contract highs at $4.285 that were made July of 2017.
Removing the threat of the trade war has brought funds back in to reload their positions ahead of potential summertime weather issues. Yesterday, China signaled they would increase their appetite for U.S. petroleum and soybeans as Beijing indicated to state-run refiners and grain purchasers to increase their dealings with U.S. companies. Commerce Secretary Ross heads to China next week for further negotiations. There are high hopes that ongoing trade talks between the U.S. and China will lead to increased Chinese purchases of the U.S. commodities. Despite comments made by President Trump that he was not satisfied with the trade talks and that any possible deal needed a different structure to provide verification that the Chinese were adhering to any negotiated settlement, this has been supportive to the corn and soybean markets.
Crude was actually lower yesterday and continuing that pattern today, as Washington is still concerned the oil rally has gone too far. There is also talk that OPEC may increase production to help offset supplies that are lost from Iran and Venezuela. U.S. shale production is forecasted to hit a record high in June.
Today’s the day that top officials from the U.S. EPA and the departments of Energy and Agriculture wil meet today to discuss details of President Trump’s planned changes to the nation’s biofuel laws. The Trump administration is seeking ways to help merchant refiners reduce the costs of complying with the U.S. Renewable Fuel Standard without hurting farmers.
Have a great day!