Early Market Talk June 3, 2021


Forecast has a couple hot days ahead and limited rain chances for the next 10 days. With that overnight trade higher. Soybeans a couple cents out of the gate and as much as 26 1⁄2 higher. Corn unchanged to a dime higher.

Northern Plaines area getting most of the weather attention with temps forecasted into the +100° area this weekend. Wind. Lack of rain and now heat to boot. MN wheat up 11¢ this morning and just below yesterday’s high. Looking toward contract high at $8.07 1⁄4.

New contract high close in soybean oil yesterday. New contract high overnight. SBO futures at all time highs eclipsing the highs of 2008. 

JBS said they planned to return to full production today after Sundays cyberattack. 

Barchart initial yield estimates of the year; corn 173.2 bpa with soybeans at 49.3 bpa. Initial USDA estimate in the May report was 179.5 and 50.8 bpa. 

Dalian corn futures up the equivalent of 6¢ overnight. 

Dow futures giving up near 200 points this morning at 34,399. Crude 0ff 16¢ at $68.67. US $ Index firm. 

Monday’s high price of $6.96 3⁄4 remains a key pivot point in my opinion.
SXSF hit a 1 1⁄4¢ carry yesterday. Trading 1⁄2 - 3⁄4 carry overnight on little volume. 

Inverses doing the work to get through tight stocks. Will look at previous tight stock / inverse years basis and spread action for perspective. 

Export sales delayed until tomorrow. 

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