FI Morning Grain Comments 05/30/23

PDF attached

 

Good
morning. 

 

The
USD was down 20 points earlier and WTI crude oil $2.16 lower. A wetter bias for the heart of the US Midwest for the back end of a ten-day weather outlook is partially sending CBOT ag futures lower. But some areas of the Midwest are still expected to miss out
on rain, and this could potentially limit price declines. US HRW wheat areas saw rain over the weekend, but drought conditions are not expected to improve much. Nearby corn spreads are firmer this morning from ongoing strong US spot cash prices and decent
US domestic end user demand by ethanol plants. Soybean spreads are also a little firmer. Global export developments were surprisingly light over the long holiday weekend. Over a two-day period, offshore values were leading SBO lower by about 94 points this
morning and meal $3.90 short ton lower.

 

Fund
estimates as of May 26

 

 

Weather

Last
seven days

 

 

 

 

World
Weather Inc.

WORLD
WEATHER HIGHLIGHTS FOR MAY 30, 2023

• Australia
  rainfall has been increased for its winter wheat, barley and canola production areas over the next ten days favoring better winter crop emergence and establishment
• U.S.
  Midwest (east of the Mississippi River) rainfall will remain lighter than usual for the next week to possibly ten days with warm temperatures likely into the weekend
• Upper
  U.S. Midwest afternoon temperatures will rise into the 80s and lower 90s Fahrenheit periodically over the coming week while upper 70s and 80s occur in most other areas
• U.S.
  Delta and southeastern states will experience net drying as well
• Showers
  and thunderstorms are expected frequently in the  U.S. Plains and a part of Canada’s Prairies over the next ten days
• Alberta’s
  drought region is not likely to get more than a few blotchy showers for a while this week
  
• Rain
  will fall in northern and western Alberta and across Saskatchewan periodically in this coming week with Thursday into the weekend wettest
• Southern
  Manitoba is becoming a little too dry
• Argentina
  wheat planting will advance well this week, although rain is still needed in the southwest
• Some
  U.S. hard red winter wheat areas are becoming too wet and some grain quality concerns are rising in the south
• Brazil’s
  Safrinha crop conditions are rated favorably, although rain is needed in Mato Grosso cotton areas
• Northern
  India will stay wetter than usual for a little while this week while monsoonal rainfall in the south is delayed by a couple of weeks
• China
  experienced some very heavy rain in the northern Yangtze  River Basin during the weekend and plenty of rain fell in the North China Plain and Yellow River Basin as well supporting long term summer crop prospects, but slowing wheat harvesting
• South
  Africa will get some timely rain for wheat establishment in this coming week
• Northern
  Europe will continue unusually dry while southern Europe is wet along with North Africa

Source:
World Weather, INC.

 

Bloomberg
Ag calendar

Tuesday,
May 30: <