Morning Comments June 2, 2020


Opening Calls:

Corn: Steady to Better

Beans: 4-5 Better

Headlines continue to swirl around Chinese relations and the extent of a halt on state-operated firms’ purchases placed on U.S. agriculture goods. It appears private importers purchased 3-5 U.S. cargoes of soybeans yesterday, giving the bean market some recovery push past yesterday morning lows. China’s demand is apparently fulfilled through mid-August but they will need beans Nov through Jan and can’t rely on South America to fulfill much of that demand. The bean market has been very sideways for a long time now as we navigate the slowed economic activity from coronavirus fears. The bull’s goal is to look at increased buying from the Chinese and the gradual reopening of the economy. 

In yesterday’s crop condition report, corn was 74% GD/EX nationwide and 85% in Iowa and beans were 70% GD/EX nationwide. Both of these figures were better than those inside the trade had expected. Exports for corn has been consistently landing on the upper end of expectations. We need these export numbers to remain strong over the next few months. Today, we are in a state of good supply based on the crop conditions amid some replant acres in the eastern corn belt. The supply side of the equation remains strong while there is still a lot of uncertainty surrounding the demand side. 

Looking for an opportunity to move some old crop grain to town? Contact your local Grain Marketing Advisor to discuss pricing and other opportunities now available for delivery by the end of June.