**Administration Note: AgResource will be releasing our Weekend Report this afternoon to afford more time to our employees for the Memorial Day Holiday.
** 6:30 AM CST CBOT Prices: July soybeans are down 2.00 cents at $9.3725, July corn is up .50 of a cent at $3.6925 while July Chi wheat is up .50 of a cent at $4.3125.
** AgResource AM Grain & Oilseed Comment: Good Morning! It is another night of mixed and low volume trade as CBOT corn, soy and wheat futures trade either side of unchanged. Just over 7,000 contracts of July corn, 13,000 contracts of July soybeans, and just over 3,500 contracts of July Chi wheat have changed hands. Most traders will be squaring a portion of their positions for the long holiday weekend amid the uncertainty of weather forecasts.
Thursday’s CBOT open interest surged 7,426 contracts in corn, 10,379 contracts in soybeans, and 4,445 contracts in Chi wheat. The gains on a lower marketplace suggest that funds and specs continue to add to their already large net short positons. Unusual for this time of year is that commercials are holding sizeable net long positions.
The US dollar & energy futures are slightly weaker this AM on follow through. The Brazilian real, Russian ruble and Argentine peso are all little changed this AM. Rumors regarding the potential for Brazilian President Temer to offer his resignation this weekend persist, but our Brazilian sources argue that this is unlikely with Temer to fight corruption charges and be impeached by late summer or early autumn. Brazil’s economy continues to improve which is likely to prevent the real from falling too far.
The overnight forecast models offer a milder temperature profile for the Central US in the coming 2 weeks. Gone are the cold temperatures that have lingered for most of the spring. Notice that portions of W Texas reached into the 100’s yesterday with that heat building northward in coming days. No extreme heat is noted for the Midwest, Plains or Delta in the next few weeks, but the warming temps will boost crop growth and soil evaporation rates.
The forecast maintains an active jet stream flow with no lasting period of drying for the Central US. Storm systems look to push across the Midwest every 2-3 days keeping many areas too wet for concerted push to finish fieldwork. The wettest weather will be across the Plains and SW Midwest, but it’s the frequency of rainfall that will bedevil farmers trying to finish seeding. The only ongoing dry area remains the N Plains where rains will be limited over the next 10 days with hints of moisture in the 11-15 day period.
In other world ag markets, Sept Paris wheat is unchanged at $167.75 euros/ MT, China’s Dalian Sept corn finished unchanged at $5.95 while Dalian Sept soymeal lost $4.00/MT at $390.85. Malaysian July palmoil futures lost 43 ringgits to settle at 2,677 RM/MT, a 3 week low.
A two sided finish is expected for the week with July soybeans to test key support at $9.25-9.35 while the grains ponder warm/wet Central US weather.
