Good afternoon friends!
Corn      349’6   +1’4
Soybeans  1001’2  -2’2
Chi Wheat   404’0  +1’4
KC Wheat 412’4   +’4
Cotton 68.49   -.28
 

 
It was a pretty boring session, especially in corn and wheat. It was announced China bought another 516,000 MT of soybeans. Asian demand for soybeans is insatiable. In more normal years, we tend to see our exports announcements peak in the up coming weeks but with lack luster supplies available for export in the SAM markets, forward Asian demand may stay on US shores.
Egypt is back in the wheat market, shopping for more imports. Russia is the lowest offer near 184 per MT, with US offering just below 190. Egypt coming back into the market is very supportive even if the US is not involved.
Gulf corn is the cheapest in the world as is our ethanol.   Brazilian cash ethanol prices this week are up another 11 cents to $2.52, vs. US Gulf ethanol at $1.67. This spread will be an attraction to import Ethanol in Brazil.  This is one reason to be bullish corn, the other is the spread between US corn and Brazil corn at the ports sits at about $20 pert MT, I expect that to remain high in Brazil which will support US prices on breaks.  Being bullish is going to be a slog but I remain willing to buy on breaks in July with ultimate targets near 350 if given the chance.
Cotton was really slow all day, with prices trading south of unchanged since a quick run up on the US open this morning. The Dec-Dec spread is keeping its even money premium which is supportive.  I remain bearish with the hope to hedge more Dec 17 cotton in the 73 cent range.
Go Cubs Go….