On Wednesday, the USDA/WASDE released its May Supply/Demand and World Crop Production estimates. The U.S. soybean ending stocks number, thought to drop by the trade’s expectations, was left unchanged. The other highlight: The Brazilian corn crop, stricken by a drought, was not lowered as much as the trade expected. 2020/2021 U.S. ENDING STOCKS For corn, the USDA pegged the U.S. old-crop ending stocks at 1.25 billion bushels vs. the trade estimate of 1.20 billion bushels and the USDA’s April estimate of 1.35 billion. For soybeans, the U.S. ending stocks were 120 million bushels vs. the April estimate of 120 million bushels. The trade expected the USDA to print 117 million bushels today.
iStock: larryhw On Monday, the CME Group’s farm markets look to end the month’s trading on a high note. At midsession, the May corn futures hit its daily limit high of 25¢ higher at $6.80½. July corn futures are 23¼¢ higher at $6.55¼. New-crop December corn futures are 14¼¢ lower at $5.65¾. May soybean futures are 26½¢ higher at $15.66¼. July soybean futures are 20 3/4¢ higher at $15.36½. New-crop November soybean futures are 17¼¢ higher at $13.59¼. July wheat futures are 28¢ higher at $7.40¼. July soymeal futures are $4.30 short ton higher at $430.10. July soy oil futures are 1.70¢ higher at 60.48¢ per pound. In the outside markets, the NYMEX crude oil market is -0.22 lower (-0.35%) at $61.92. The U.S. dollar is higher, and the Dow Jones Industrials are 5 points lower (-0.02%) at 34,038 points.
On Monday, the CME Group’s corn, soybean markets finish strong. At the close, the May corn futures settled 6 1/4¢ higher at $5.92 3/4. July corn futures finished 6 3/4¢ higher at $5.80 3/4. New crop December corn futures settled 8¢ higher at $5.20 3/4. May soybean futures closed 16 1/2¢ higher at $14.49 3/4. July soybean futures closed 14¢ higher at $14.36 3/4. New crop November soybean futures closed 10¢ higher at $12.84 1/4. July wheat futures finished 1 1/4¢ lower at $6.53 1/2. July soymeal futures settled $4.90 short term higher at $411.30. July soy oil futures closed +0.37 lower at 53.87¢ per pound. In the outside markets, the NYMEX crude oil market is +0.22 higher (+0.35%) at $63.35. The U.S. dollar is lower, and the Dow Jones Industrials are 165 points lower (-0.49%) at 34,034 points.
The culprit is what’s being called a monster Rex block weather pattern. It’s made up of a high pressure system sandwiched between two low pressure systems. When one of the low pressure systems moves below the high pressure system, it blocks the high pressure. That means the system is stuck and will not be able to move for a long time. Rex blocks are characterized by a high-pressure system located pole-ward of a low-pressure system. The Rex block will remain nearly stationary until one of the height centers changes intensity, unbalancing the high-over-low pattern, according to the National Weather Service (NWS).
On Monday, the CME Group’s farm markets lean on the soybean complex for strength. At the close, the May corn futures are 3¢ lower at $5.42½. July corn futures are 2¼¢ lower at $5.31¼. New-crop December corn futures are 4¼¢ lower at $4.77½. May soybean futures are 9¾¢ higher at $14.39. July soybean futures are 9¼¢ higher at $14.23. New-crop November soybean futures are 6¼¢ higher at $12.53. May wheat futures are 5½¢ lower at $6.47½. May soymeal futures are $0.30 short term lower at $417.90. May soy oil futures are 0.89¢ higher at 52.69¢ per pound. In the outside markets, the NYMEX crude oil market is -0.73 lower (-1.10%) at $65.36. The U.S. dollar is higher, and the Dow Jones Industrials are 469 points higher (+1.49%) at 31,965 points.