Soybeans–
The U.S. made an made a trade deal agreement with China, following the meetings in London this week. The U.S. will have a 55% tariff on China, while China will keep a 10% tariff on the U.S. Progress has also been made on trade agreements with India and Canada. Soybeans did not have a strong reaction to the news with China.
As of Monday, planting progress is at 90% complete, up 6% over last week. The 10-year average for this time of year is 84%. Crop conditions were rate 68% good/excellent up 1% over last week. The 10-year average for soybean conditions at this time of year is 69%. The best conditions for this time of year came in 2018 at 74% good/excellent. The worst conditions for this time of year were 55% good/excellent in 2001. The worst soybean crop conditions at this time are in in Illinois at 59% good/excellent and 7% poor/very poor. Illinois is also the largest soybean growing area, but Iowa, the second highest yielding state, is at 80% good/excellent.
Ending stocks were tightened more than expected on the May WASDE, any further reductions tomorrow would be bullish for soybean prices.
July Soybeans (ZSN25) settled at 1050 (-7), high of 1062, low of 1049. New crop November Soybeans (ZSX25) settled at 1029 (-2). Cash price is at 1043 (+2)
July Bean Meal (ZMN25) settled at 294.2 (-1.7) high of 298, low of 293.9
July Bean Oil (ZLN25) settled at 48.02 (+0.23) high of 48.27, low of 47.47
The July Meal to Oil ratio (54.55% Meal – 45.45% Oil)
ZSN25 Moving Averages – (1054) 5-day, (1053) 20-day, (1047) 50-day, (1050) 100-day, (1047) 200-day
ZSX25 Moving Averages – (1032) 5-day, (1037) 20-day, (1029) 50-day, (1032) 100-day, (1033) 200-day
ZMN25 Moving Averages – (299.3) 5-day, (298.6) 20-day, (299.4) 50-day, (306.7) 100-day, (312.8) 200-day
ZLN25 Moving Averages – (47.47) 5-day, (48.44) 20-day, (48.36) 50-day, (46.70) 100-day, (44.95) 200-day
The Commitments of Traders report for the week ending June 6th showed soybeans Managed Money traders sold -28,096 contracts to their bringing their net long total to 8,601 contracts. Producer/Merchant traders bought 32,487 contracts bringing their net short position to -143,487 contracts. Non-Commercial & Non-Reportable traders net position was 20,330 contracts.
The Commitments of Traders report for the week ending June 6th showed meal Managed Money traders sold -2,932 contracts, moving to a net short position of -96,717 contracts. Producer/Merchants added 2,967 contracts bringing their net long position to 111,232. Meal Non-Commercial & Non-Reportable traders hold a short position of -58,340 contracts.
For bean oil, the Commitments of Traders report for the week ending June 6th showed Managed Money traders were net long 31,990 contracts after selling -21,998 contracts. Non-Commercial & Non-Reportable traders net long position was 41,253 contracts.
If you want to start trading, please open an account with Walsh Trading, Inc. using this link
CORN –
July Corn (ZCN25) settled at 437 (-1), high of 444, low of 436. New crop December Corn (ZCZ25) settled at 439 (-0.25). Cash price is 455 (+6)
The June WASDE report comes out tomorrow. The average guess for USDA’s old crop figure is 1.392 billion bushels (bb) and 1.792 for new crop. The low guess for new crop is 1.713 bb and the highest is 1.792 bb. On the May report, old crop came in at 1.415 bb and new crop was 1.8 bb. Yields are expected to be unchanged.
Corn crop ratings came in Monday at 71% good/excellent, up 2% over last week. The strongest corn crop ratings are in Iowa, followed by Minnesota. The worst conditions are in Indiana and Illinois. Indiana has 7% rated poor/very poor.
ZCN25 Moving Averages – (438) 5-day, (446) 20-day, (462) 50-day, (475) 100-day, (462) 200-day
ZCZ25 Moving Averages – (443) 5-day, (443) 20-day, (448) 50-day, (453) 100-day, (448) 200-day The Commitments of Traders report for the week ending June 6thh showed that corn Managed Money sold -4,913 contracts bringing their net position to -154,043 contracts. Producer/Merchant traders bought 47,609 contracts bringing their net position to -102,452. Non-Commercial & Non-Reportable traders net short position was -170,495 contracts
If you want to start trading, please open an account with Walsh Trading, Inc. using this link
WHEAT –
July Chicago Wheat (ZWN25) settled at 534 (-0.25), with a high of 539, low of 532. September Wheat (ZWU25) settled at 549 (+0.25). Chicago Wheat has a cash price of 540 (-7). July KC Wheat (KEN25) settled at 526 (-1). July Spring Wheat (MWN25) settled at 617 (+4)
The wheat market slightly closed lower again today. Rains are expected this week in the southern Plains, but they will likely miss the majority of the HRW crop that has been troubled by excessive moisture. Winter wheat harvest progress is at 4% as of Monday, up 1% over last week. Thursday’s WASDE report estimates expect a slight increase in world carryout. The estimate for the USDA’s old crop figure is 842 mb and 924 for new crop. On the May WASDE report, the USDA came in at 841 mb for old crop and 923 mb for new crop.
ZWN25 Moving Averages – (542) 5-day, (537) 20-day, (541) 50-day, (561) 100-day, (577) 200-day
ZWU25 Moving Averages – (556) 5-day, (552) 20-day, (555) 50-day, (576) 100-day, (590) 200-day
KEN25 Moving Averages – (536) 5-day, (533) 20-day, (544) 50-day, (572) 100-day, (582) 200-day
MWN25 Moving Averages – (622) 5-day, (607) 20-day, (607) 50-day, (616) 100-day, (626) 200-day
The Commitments of Traders report for the week ending June 6th showed that Managed Money traders in the wheat market were net short -100,572 contracts, having decreased their short position by 654 contracts. Producer/Merchant traders added 2,550 contracts to bring their net position to 36,279 contracts. Non-Commercial & Non-Reportable traders were net short -99,069 contracts.
If you want to start trading, please open an account with Walsh Trading, Inc. using this link
Hans Schmit
Account Executive Walsh Trading
Direct 312-765-7311
Toll Free 800-993-5449
Fax 312 256 0109 fax
hschmit@walshtrading.com