May 19, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Jul ‘16 390’0 -9’4 May ‘16 346’0 -12’0
Sep ‘16 392’4 -9’6 June ‘16 348’0 -11’0
Dec ‘16 397’2 -8’6 July ‘16 350’0 -12’0
Mar ‘17 405’0 -8’2 NC ‘16 349’0 -9’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jul ‘16 1071’4 -3’6 May ‘16 996’0 -1’0
Aug ‘16 1073’0 -4’0 June ‘16 996’0 -1’0
Sep ‘16 1062’0 -4’0 July ‘16 996’0 -4’0
Nov ‘16 1053’4 -4’0 NC ‘16 973’0 -14’0

 

Sharply lower markets across the board for grains, although soybeans did rally to close 20 cents off day’s lows

July corn wiping out a good chunk of the previous 5 days gain

July beans traded to the lowest price since the May report.

Bearish news today includes spillover weakness from China & the stronger dollar, up 231 ticks

An improved weather outlook for both the Midwest and the ECB also weighing on futures.

NOAA’s 3-mo outlook is bearish with an equal chance of above or below normal precip.

Metal futures on the Dalian Exchange lose 4% as speculators move away from risk.

Fed comments increased the likelihood of a rate hike; bearish for US exporters.

Weekly export sales were bullish with corn @ 58 mb, beans @ 20.4 and wheat @ 6.4 mb.

In addition, the USDA announced the sale of 129 kmt of beans to China for 2015-16.

EPA proposed the 2017 ethanol mandate @ 14.8 bln gal, an increase from the current 14.5.

US on pace to produce roughly 14.9 bln gal this year; USDA projecting increases for 16/17.

 

May 19, 2016