FI Morning Grain Comments 06/01/23

PDF attached

Good
morning. 

US
equities are now suggesting a lower open. The USD was down 30 points earlier and WTI crude oil $0.06 higher. US agriculture markets are higher from short covering, Black Sea shipping concerns and renewed US weather concerns. The US weather forecast turned
slightly negative for the US Midwest. The northern Midwest and western IA will see rain through Friday. Overall, the US Midwest will dry down over the next ten days with temperatures above normal. US Great Plains will continue to improve with precipitation
over the next week. China’s largest producing state of Henan is forecast to receive additional rain over the next week. Soybeans and wheat are leading the charge higher this morning. The recent slump in prices attracted global import tenders. Malaysian palm
futures ended higher on technical buying after dropping more than 10 percent during the Monday-Wednesday period. Offshore values were leading SBO higher by about 51 points this morning and meal $0.20 short ton higher. A Bloomberg poll looks for weekly US ethanol
production to be up 15,000 thousand barrels to 998k (990-1010 range) from the previous week and stocks down 63,000 barrels to 21.979 million.

Fund
estimates as of May 31

Weather

World
Weather Inc.

WORLD
WEATHER HIGHLIGHTS FOR JUNE 01, 2023

• Not
  many changes overnight
• Northern
  Europe will continue unusually dry for at least another ten days,  though no extreme temperatures are expected
• Eastern
  Russia’s New Lands will be dry for a few more days before rain scatters through the production region, but rain is expected next week offering “some” relief to recent drying
• Kazakhstan
  will continue dry biased throughout the next ten days
• Western
  Australia received some welcome rain overnight with locally heavy amounts in the south
• All
  of Australia still has a very good chance for additional needed moisture in each of the major wheat, barley and canola production areas during the coming ten days
• North
  Africa and southern Europe will continue wetter than usual
• India’s
  monsoon will perform poorly in the first half of this month in southern and eastern parts of the nation
• Tropical
  cyclones may evolve next week in the Arabian Sea, Bay of Bengal and South China Sea
  
• U.S.
  Midwest crop areas will continue to dry down over the next ten days with temperatures very warm through the weekend and then a little milder briefly next week
  
• U.S.
  Great Plains weather will continue wettest from western Texas to Montana
• Saskatchewan,
  Canada will receive frequent rainfall during the next ten days except in the southeast where net drying is likely
• Southern
  Manitoba, Canada will be drying out for a while as well while the biggest concern remains in eastern and southern Alberta where drought remains a serious concern