Home Farm Equipment Morning Market Review for May 26, 2021

Morning Market Review for May 26, 2021

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Grains lose extra floor after yesterday’s selloff as favorable climate circumstances increase crop growth

  • Corn combined
  • Soybeans down 6-9 cents, soyoil down $0.26/lb, soymeal down $2.50/ton
  • Wheat down 2-5 cents

*Costs as of 6:50 am CDT.

Editor’s Observe: Our newest Feedback from the Field evaluation is stay! Compensate for all the newest crop progress information from farmers across the nation on this newest installment. Variable climate circumstances are the overarching theme, with farmers battling extreme dryness and wetness in varied corners of the Heartland.

The Suggestions from the Discipline sequence is an open-sourced platform for U.S. growers to share and examine rising circumstances throughout the nation. Wish to see how your crops stack as much as others throughout the nation?! Click here to take our ongoing farmer survey on crop progress at any level within the 2021 grain season. Our Google Map, up to date each day, gives all previous responses for farm readers.

Corn

Corn futures have shed practically a greenback over the previous week, the biggest share drop for July futures contracts since 1973. The July contract traded $0.03-$0.04/bushel larger on technical shopping for this morning however all different contracts fell $0.01-$0.02/bushel on a good two-day forecast for crops within the Northern and Central Plains.

Weekly ethanol manufacturing might end up a fifth consecutive week of upper output for the week ending May 21, if in the present day’s weekly Petroleum Stock Standing Report from the U.S. Vitality Info Administration matches ongoing power developments.

In final week’s report, ethanol manufacturing lastly returned to pre-pandemic ranges, rising 5% from the earlier week to 43.3 million gallons/day of output. It was the biggest weekly output for the ethanol sector in a yr and two months, fueled by a surge in gasoline demand and better ethanol enter charges by blenders and refiners.

Managed cash funds have performed a major position in latest worth volatility within the grain markets. As Farm Futures contributing analyst Bryce Knorr factors out, “these so-called hedge funds certainly helped accelerate the downturn over the last two weeks, trimming bullish bets by more than 95,000 contracts worth some 475 million bushels.”

However cash managers’ shopping for patterns on grain futures might not present fairly as many insights as industrial merchants’ positions. These merchants, that are sometimes merchandisers coordinating grain actions for exporters, processors, and different finish customers, account for 73% of brief industrial positions on corn as of every week in the past.

Knorr explains that this file place is driving money corn costs larger within the newest Ag Marketing IQ column. “That corn is in ‘strong hands’ now, owned by commercials who must force end users to pay a basis premium in order to make a profit,” Knorr observes.

Farmers have taken benefit of the additional money incentive to promote their crops forward of peak summer season export season. “Record hedging by commercials is a sign of the times in today’s market, one suggesting farmers should look for strong basis on new crop forward cash sales if they don’t plan to use futures or hedge-to-arrive contracts,” Knorr concludes. “Watching activity by these grain companies can also provide clues about how much corn end users are really buying.”

Soybeans

Soybean costs fell barely in a single day, down $0.06-$0.09/bushel finally look, on enhancing U.S. climate circumstances and above-average planting paces. Losses had been restricted by a dock employees strike in Argentina throughout peak export season.

Port employees in Argentina will start a two-day strike in the present day to protest sluggish vaccination charges in opposition to COVID-19. Rosario, Argentina’s largest export terminal, will see all transport exercise sluggish to a halt in the present day as the employees go on protest throughout Argentina’s busiest transport season.

Staff represented by 11 unions are demanding to be moved up the precedence listing to obtain the COVID-19 vaccine because the virus makes a resurgence in Argentina.

Argentina is the world’s largest exporter of soybean meal and the quantity three exporter of corn and soybeans. About 80% of Argentina’s worldwide grain flows are shipped out of Rosario. COVID-19 circumstances are on the rise in Argentina, the place over 75,000 folks have succumbed to the possibly deadly virus.

Wheat

Wheat costs adopted these of corn barely decrease within the in a single day buying and selling session, shedding $0.02-$0.05/bushel on rain showers within the Central and Northern Plains in addition to the Jap Corn Belt. A stronger greenback additionally contributed to decrease wheat costs this morning.

Climate

Heat temperatures and partially clear skies will linger over the Heartland in the present day, in line with NOAA’s short-range forecasts. The Jap Corn Belt will see the stays of yesterday’s showers in the present day, with as much as a half inch of accumulation anticipated within the area over the subsequent 24 hours.

A precipitation system growing within the Northern Rockies this morning will seemingly shift east into the Northern Plains this night, pushing rain and thunderstorms into the Northern and Central Plains early tomorrow morning. The storm system might deliver as much as an inch of much-needed rain to the drought-plagued area within the span of the subsequent 24 hours.

The nation’s Heartland will see extra rain to shut out the month, in line with the newest 6- to 10-day outlooks issued by NOAA. Between May 31 and June 4, there’s a 33% – 40% likelihood of above common rainfall within the Central and Southern Plains and Central Mississippi River Valley.

However already dry areas, together with the Mountain West, Pacific Northwest, Northern Plains, and Higher Nice Lakes Area, have a 33%-50% likelihood of under common rainfall throughout the identical time interval.

Temperatures in areas receiving rain will seemingly hover under common in the course of the May 31 – June 4 time interval. However the West Coast, Pacific Northwest, Northern Plains, and Higher Nice Lakes will seemingly see above common temperatures, which might exacerbate present drought circumstances in every area.

052621TempOutlook.jpg

Financials

Coronavirus circumstances within the U.S. rose by 22,701 circumstances from yesterday to 33,166,879 circumstances as of this morning in line with the Johns Hopkins Coronavirus Resource Center. The demise toll elevated by 253 lives to 590,950 deaths as of press time. In line with the CDC, practically 50% of the whole U.S. inhabitants has obtained a minimum of one vaccine. Over 131 million Individuals (40%) are absolutely vaccinated. Over 1.7 billion vaccine doses have been administered worldwide.

Rising enter costs are placing strain on farmers to reexamine find out how to get probably the most out of enter purchases. As Farm Futures’ Ben Potter explores in a recent feature, the standard knowledge of a 1:1 ratio for nitrogen software to yield a one-bushel improve in corn manufacturing doesn’t at all times produce probably the most worthwhile outcome for farmers.

Timing, volumes, crop rotations, and completely different product choices play a crucial position in figuring out excellent fertilizer plans. Precision know-how and tissue sampling additionally enhances the effectiveness of those soil fertility instruments. However the additional endurance, mechanical savvy, and planning reap rewards.

“At the end of the day, it comes down to balance,” says Ron Bopp, a Nebraska farmer. “You don’t want to run out, but you don’t want to have too much N at the end of the year. Too much is a waste, and there are adverse environmental runoff effects.”

Easing considerations about long-term inflation buffeted inventory market beneficial properties within the in a single day buying and selling session. S&P 500 futures inched up 0.28% on the information to $4,197.25.

























































Morning Ag Commodity Costs – 5/26/2021
Contract Models Excessive Low Final Web Change % Change
JUL ’21 CORN $ / BSH  6.2675 6.1725 6.24 0.0375 0.60%
SEP ’21 CORN $ / BSH  5.445 5.36 5.41 -0.0025 -0.05%
DEC ’21 CORN $ / BSH  5.1675 5.085 5.14 -0.0175 -0.34%
MAR ’22 CORN $ / BSH  5.23 5.1525 5.21 -0.0125 -0.24%
MAY ’22 CORN $ / BSH  5.255 5.185 5.2525 0 0.00%
JUL ’22 CORN $ / BSH  5.26 5.1775 5.225 -0.0275 -0.52%
SEP ’22 CORN $ / BSH  4.8375 4.7725 4.8225 -0.0025 -0.05%
JUL ’21 SOYBEANS $ / BSH  15.195 15.02 15.0625 -0.055 -0.36%
AUG ’21 SOYBEANS $ / BSH  14.6725 14.5 14.52 -0.085 -0.58%
SEP ’21 SOYBEANS $ / BSH  13.8975 13.7075 13.7325 -0.09 -0.65%
NOV ’21 SOYBEANS $ / BSH  13.565 13.345 13.385 -0.0875 -0.65%
JAN ’22 SOYBEANS $ / BSH  13.56 13.36 13.4075 -0.075 -0.56%
MAR ’22 SOYBEANS $ / BSH  13.35 13.1575 13.195 -0.0775 -0.58%
MAY ’22 SOYBEANS $ / BSH  13.32 13.1325 13.16 -0.0825 -0.62%
JUL ’22 SOYBEANS $ / BSH  13.325 13.1425 13.1975 -0.0625 -0.47%
AUG ’22 SOYBEANS $ / BSH  13.0875 #N/A 13.0575 0 0.00%
JUL ’21 SOYBEAN OIL  $ / LB 67.25 66.09 66.41 -0.28 -0.42%
AUG ’21 SOYBEAN OIL  $ / LB 63.1 61.98 62.2 -0.34 -0.54%
JUL ’21 SOY MEAL $ / TON 389.3 383.2 383.8 -2.5 -0.65%
AUG ’21 SOY MEAL $ / TON 389.5 383.7 384.2 -2.2 -0.57%
SEP ’21 SOY MEAL $ / TON 388.7 383 383.4 -2.1 -0.54%
OCT ’21 SOY MEAL $ / TON 384.7 380.9 381.4 -1.4 -0.37%
DEC ’21 SOY MEAL $ / TON 386.6 381.6 382 -1.8 -0.47%
JUL ’21 Chicago SRW $ / BSH  6.5775 6.5 6.5225 -0.0425 -0.65%
SEP ’21 Chicago SRW $ / BSH  6.6 6.535 6.55 -0.05 -0.76%
DEC ’21 Chicago SRW $ / BSH  6.6575 6.5925 6.6125 -0.0475 -0.71%
MAR ’22 Chicago SRW $ / BSH  6.715 6.6525 6.67 -0.05 -0.74%
MAY ’22 Chicago SRW $ / BSH  6.675 6.645 6.65 -0.05 -0.75%
JUL ’21 Kansas Metropolis HRW $ / BSH  6.065 5.9975 6.0125 -0.0325 -0.54%
SEP ’21 Kansas Metropolis HRW $ / BSH  6.125 6.0675 6.0825 -0.0325 -0.53%
DEC ’21 Kansas Metropolis HRW $ / BSH  6.225 6.1675 6.1775 -0.035 -0.56%
MAR ’22 Kansas Metropolis HRW $ / BSH  6.31 6.2825 6.2875 -0.015 -0.24%
MAY ’22 Kansas Metropolis HRW $ / BSH  6.34 6.34 6.34 -0.0225 -0.35%
JUL ’21 MLPS Spring Wheat $ / BSH  6.8375 6.785 6.8 -0.0275 -0.40%
SEP ’21 MLPS Spring Wheat $ / BSH  6.8975 6.8575 6.875 -0.02 -0.29%
DEC ’21 MLPS Spring Wheat $ / BSH  6.9575 6.9275 6.945 -0.0225 -0.32%
MAR ’22 MLPS Spring Wheat $ / BSH  7.04 7 7.0125 -0.025 -0.36%
MAY ’22 MLPS Spring Wheat $ / BSH  7.07 #N/A 7.0825 0 0.00%
JUN ’21 ICE Greenback Index $ 89.795 89.58 89.785 0.157 0.18%
 JU ’21 Mild Crude $ / BBL  66.43 65.77 65.83 -0.24 -0.36%
 AU ’21 Mild Crude $ / BBL  66.15 65.5 65.55 -0.24 -0.36%
JUN ’21 ULS Diesel $ /U GAL 2.0465 2.0293 2.0298 -0.0056 -0.28%
JUL ’21 ULS Diesel $ /U GAL 2.0466 2.0284 2.029 -0.0049 -0.24%
JUN ’21 Gasoline $ /U GAL 2.1267 2.1109 2.118 0.0007 0.03%
JUL ’21 Gasoline $ /U GAL 2.1336 2.1157 2.1234 0.0005 0.02%
MAY ’21 Feeder Cattle $ / CWT 0 #N/A 136.625 0 0.00%
AUG ’21 Feeder Cattle $ / CWT 0 #N/A 156.675 0 0.00%
 JU ’21 Stay Cattle $ / CWT 0 #N/A 116.725 0 0.00%
 AU ’21 Stay Cattle $ / CWT 0 #N/A 120.1 0 0.00%
JUN ’21 Stay Hogs $ / CWT 0 #N/A 115.25 0 0.00%
JUL ’21 Stay Hogs $ / CWT 0 #N/A 117.5 0 0.00%
MAY ’21 Class III Milk $ / CWT 0 #N/A 18.96 0 0.00%
JUN ’21 Class III Milk $ / CWT 17.68 #N/A 17.71 0 0.00%
JUL ’21 Class III Milk $ / CWT 18.33 18.27 18.28 0.07 0.38%

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