Early Market Talk June 11, 2021

Emtwebsite

Corn and soybeans lower this morning on decent and forecast rains in both N and South Dakota overnight. At 0615 CZ21 off 12¢ at $6.04 1⁄4 with SX21 16 1⁄2¢ lower at $14.43.

Big jump in corn open interest on yesterday’s rally. Total OI up Near17.5K contracts on volume of 618K contracts. Soybean OI up 1,419 contracts. 

References to 2012 increasing in trade circles. That year CU futures rallied $3.34 1⁄4 from June 15th to a high of $8.43 3⁄4 on Aug 10th. 

Soy / corn spread at 2.23 this morning. KW / Corn spread at 90¢. Soy / corn spread heading to historically narrow levels. Wheat / corn in uncharted territory. 

Wheat working into feed rations with the above. Empty barns in the country. Lower feed use to come? 

Weather trumps all. A whole lotta 90’s with little rain in the forecast for the next week. The 11 – 15-day models showing a little better rain chance. 

Weather takes control of markets with its impact on weekly crop ratings. Acreage and stocks data at month end. Near universal expectation on larger corn acreage. Like we had universal expectations the SNSX was going to $3.00????

Today is the last day of the Index Fund roll. Not been a big help to the CNCU. Little more so to the SNSQ. 

Dow futures trading 59 points higher this morning. Crude 25¢ higher at $70.54. US $ Index showing modest strength. 

Morning weather headlines - 10 day forecast for corn belt still dry, but wetter 11- 15 day. Dryness to linger in Poland and increase in the UK. Wet weather to continue across Black Sea winter wheat areas. 

Market Talk Footer

INTL FCStone, Inc. and its affiliates assume no liability for the use of this information contained and expresses no solicitation to buy or sell futures, options on futures contracts, or OTC products. Commodity trading involves risks and past financial results are not necessarily indicative of future performance. Any hypothetical examples given are exactly that and no representation is being made that any person will or is likely to achieve profits or losses based on those examples. Reference to and discussion of OTC products are made solely on behalf of INTL Hanley, LLC. Reproduction without authorization is forbidden. All rights reserved.


E- mail: Bruce.Nelson@IFCS.com

1075 Jordan Creek Parkway Suite 300
West Des Moines, IA 50266

www.intlfcstone.com
800-422-3087 Ext 3791
515-223-3791