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- Corn is trading quietly with front month July slightly higher but deferred months a bit lower.
- Weather forecasts have begun to show models turning cool and wet for the second half of June, but it should remain dry before then.
- Brazil’s corn production has been estimated higher to 137 mmt by Safras & Mercado, and their previous estimate was 130 mmt.
- July corn on the Bovespa exchange in Brazil ended at the equivalent of $4.95 while July corn on the Dalian exchange was lower at the equivalent of $9.38 a bushel, down 7% on the year.
- Soybeans and both soy products are lower this morning as well as crude oil, possibly due to the favorable forecast in the second half of June.
- For the moment, trade appears to be expecting a record crop from the US and has already priced in Brazil’s record crop, but weather could still be a factor in the US.
- Soybean meal is taking a hit this morning and is still under pressure from California’s Proposition 12 requirements.
- Friday’s CFTC data showed funds as sellers of soybeans by 19,795 contracts reducing their net long position to just 4,147 contracts.
- Wheat is trading lower along with the rest of the grain complex as recent rains in HRW wheat areas have fallen, and export demand remains poor.
- Russia reportedly attacked central Ukraine with Iranian drones on Sunday which was the 1,500th anniversary of Ukraine’s capital. Attacks were also directed at the port of Odesa.
- Crop exports out of the Black Sea corridor are the slowest they have been since the agreement was originally struck with only 3 vessels being completed for inspections per day.
- Friday’s CFTC report showed funds adding to their net short position. They sold 6,019 contracts increasing their short position to 118,788 contracts.