To start the month of June, the agricultural markets of the CME Group closed sharply upwards.
At the close, July corn futures ended up 32 to $ 6.88. Futures on the new September crop ended 28 ¾ ¢ higher at $ 6.02. December corn futures closed 31½ higher at $ 5.77.
July soybean futures ended up 18 to 15.48 ½. August soybean futures closed ¾ ¢ 18 higher at $ 15.00. New crop soybean futures in November ended up 24¼ ¢ to $ 13.97.
July wheat futures closed 30 ¢ higher at $ 6.93½.
July soybean meal futures were $ 3.20 per short ton at $ 398.70.
Soybean oil futures in July closed $ 1.60 to 67.39 a pound.
In foreign markets, the NYMEX crude oil market is up +1.35 (+ 2.04%) to $ 67.67. The US dollar is down and the Dow Jones Industrials is 74 points (+ 0.22%) higher at 34,603 points.
Britt O’Connell, ever.ag, says markets are growing as a frost bonus.
“The markets are turning higher today as the market tries to better understand the damage to the crop over the weekend due to frost. For the record, we’ve heard of affected areas in northeast Iowa, north-central Michigan, central Minnesota, and North Dakota. Unlike the weather last weekend, the extended forecast calls for hot, dry weather moving across much of the Corn Belt. While the heat is welcome, many areas walk a fine line between just enough and not enough rain. Volatility will remain high as long as closing stocks remain tight, ”O’Connell said.
David Tolleris, WxRisk.com, says Corn Belt growth time could stay dry for an extended period.
“The overall configuration looks really dry for most of the central and upper plains and much of the Midwest for the next two weeks. The drier pattern is also a bit warmer, which will help reduce the deficit that is currently occurring. developed in many parts of the Plains, Midwest, and Delta regions with respect to GDD. Essentially what’s going to happen is that the Western Atlantic Ridge – which is often referred to as the Bermuda – will build in the eastern third of CONUS The effect will be to stop precipitation for the east coast and much of the Midwest and Upper Plains, but will increase the chances of precipitation on the lower plains and the coast of gulf, ”Tolleris said.
Tolleris added, “A major low centered in the Midwest will move steadily eastward over the next five days. At the surface, a cold front will not have much rain as it passes through the western Corn Belt (WCB), but there will be some minor rains in the eastern parts of the ECB. The front will slow in the East Coast and Gulf Coast states with increased risk of rain in those areas. Temperatures will continue to be below normal south of I-70 and well below normal in the lower plains. There will be some warming in the high plains up to the Great Lakes region.
Al Kluis, Kluis Advisors, said the USDA Crop Progress Report today may indicate that the U.S. corn crop is rated around 72% good to excellent. The main area of concern is in the northern plains, where many areas have not received rain or have only had 0.5 inches of rain over the past four weeks.
“The overall corn and soybean crops in the United States look good with limited problem areas. The huge cash market premium for old crops continues to erode, ”Kluis said in a note to clients.
Kluis added, “I monitor the price of corn and soybeans in China. Last week, Chinese financial regulators increased trading limits to reduce speculation in the stock and commodity markets. This triggered a sharp drop that bombarded prices. However, grain prices rebound in the first two days of trading this week. ”
On Friday, the CFTC report showed that fund managers had sold 23,000 CBOT corn futures and options during the week ended May 25. This lowered their net long position to 268,000 contracts, or 39% below their three-week total. For soybeans, speculators remain a net buyer of 133,657 contracts, against 144,594 contracts a week earlier.