Early Market Talk June 2, 2021


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. 

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

800-422-3087 Ext 3791