Market Commentary  06/03/20 2:55:58 PM Printer Friendly VersionPrinter Friendly Version


Corn closed mixed within a ¼ cent of yesterday’s close in quiet trade.
Trading range just 3 cents today. Funds were moderate sellers of 5,000
contracts mid-day to add to their estimated short position of 261,000
contracts. Seasonals turn higher into and through pollination, but the
latest weather forecasts do not look threatening, especially now that the
8-14 day temperature forecast has cooled. There are plenty of wet holes
in the corn patch, but overall the crop is off to a good start. TS Cristobal
is making its way north and will be in central LA by Monday. Current
concern is too much rain impacting NOLA water levels and logistics. The
weekly ethanol report shows grind up for the 5th week in a row with 77.7
mln. bu. of corn used, but production lags last year weekly levels by 27%.
Ethanol stocks continue to decline for the 6th consecutive week and are
down 3% this week. Gas demand up 4.1% this week. Eastern corn belt
ethanol producers are improving grind to go along with their western
counterparts. Weekly export sales in the morning expected in the 400-
900 tmt range. Outside markets show the DOW up over 450 points (now
above last year at this time) as it overlooks current issues. There is talk
of needing negative interest rates in the U.S. to keep the recovery going
– that will be interesting. U.S. officials continue to say the right things
regarding China adhering the Phase 1 trade deal.

Soybeans closed 7 cents higher in a 7 cent trading range. Funds
were cautious buyers of 5,000 contracts mid-day to add to their
limited long position of 8,000 contracts. Trade continues to
reference long bean/short corn spread activity. China continuing
to buy and show interest in buying U.S. beans as well as the sale
of 186 tmt of soybeans to unknown destinations (66 tmt 19/20 and
120 tmt 20/21) is supportive. Dollar declining and Brazil Real
improving also in the mix. New news in soybeans minimal today
as it seems everything revolves around Chinese purchase interest
in U.S. beans. Weekly export sales in the morning expected in the
500-1,000 tmt range.

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