Highlights
Yesterday morning, The USDA announced the sales of:
55,000 mts of old crop soybeans to Pakistan
297,000 mts of new crop soybeans to Pakistan
OPEC will increase crude oil production 648,000 barrels per day in July. That news pressured crude oil early yesterday, but the weekly energy report showed a larger than expected drawdown of crude and diesel inventories, which turned crude and diesel prices higher.
Corn futures price in China is $10.94. That is pretty close to making US corn a cheaper alternative.
Russia said it is willing to guarantee safe passage of vessels hauling Ukrainian grain. The problem is all of Ukraine’s harbors access channels have been heavily mined and it will take months to clear them. Turkey has agreed to help remove the mines, Turkey must be hurting for wheat.
NOLA (New Orleans, LA) urea price continues to slide. A $500 2nd half June shipment barge traded yesterday. That marks a $435 price correction lower since the high was set in March.
Ethanol Update
Average daily ethanol production:
1,071,000 barrels last week.
1,014,000 barrels the previous week.
1,034,000 barrels the same week a year ago.
765,000 barrels the same week two years ago.
Ethanol inventory was 22.961 million barrels compared to 23.712 million barrels the previous week.
Market Data
This morning:
Crude oil is at $116.26, down $0.61
The dollar index is at 101.72, down 0.10
July palm oil is at 6,645 MYR, down 74. The contract high was made April, 29th at 7,229 MYR. Palm oil owns 36% and soybean oil owns 28% world market share.
December cotton is at $120.03, down $0.07 per cwt. The contract high was made May, 17th at $133.79 per cwt. Cotton competes with soybeans and corn for acres.
July natural gas is at $8.335, down 0.150. The contract high was made May, 26th at $9.447. Natural gas is the primary cost to manufacture nitrogen fertilizer.
July ULSD is at $4.2416 per gallon, up 0.0329. The contract high was made yesterday at $4.2924. ULSD stands for Ultra Low Sulfur Diesel.
Rain Days Update
The Western Corn Belt has 4 more rain days in the 10 day forecast than yesterday and the Eastern Corn Belt has 1 more rain daysthan yesterday.
The 6 to 10 day forecast updated every day at: https://www.cpc.ncep.noaa.gov/products/predictions/610day/
Explanation of Rain Days