Corn trading a wide 15¢ high to low two-sided range overnight. CN 9 1⁄2¢ lower in
the first hour of trade but quickly recovered and traded as much as 5 1⁄2¢ higher in
the middle of the night. SN21 has seen a 21 1⁄2¢ high to low range with most of
that range in positive territory.
At 0600 CN21 trading fractionally lower at $6.88 1⁄4 on volume of 18K contracts. SN21 trading 8 1⁄2¢ higher at $15.56 3⁄4 on trade volume of just over 12K contracts.
MN wheat continues to surge higher on hot dry weather. Spot month trading 18 1⁄2¢ higher at $7.90 and $1.24 1⁄4 off the low posted just 4 days ago. Looks set to test the May 7th high of $8.07 1⁄4. Deliveries on the July contract at month end. Plashes of February ’08 come to mind.
Not much rain in the forecast for the next two weeks over the northern Plaines and NW corn belt. Temps topping the 100° this weekend in the far NW belt. Traders paying closer attention.
Dow futures trading 50pts higher at 34,600. Crude 73¢ higher at $68.45. US $ Index sharply higher.
First corn crop rating out yesterday afternoon with 76% of the nations corn crop rated G/E. Last year the initial rating was 74%.
Our team in Brazil lowered their estimate for Brazilian corn production over 10 mmt to 89.7 mmt. By far the lowest estimate I have heard in trade circles and well below the current USDA estimate of 102 mmt. Implications for late year US exports?
US corn export inspections reported at 2.05 mmt yesterday and slightly better than what is needed to hit the current target of 2,450 mln bu.
China crush margins remain in the red. US margins remain positive. Will take a quick look at US margin later this morning.
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