Morning Comments May 18, 2020

Soybean

Opening Calls:

Corn: Up 1-2

Beans: Up 6-7

Markets are opening a bit higher with energy markets up sharply. A bit of a bullish weather argument can be made as there are some very wet conditions in the eastern corn belt along with some colder temperatures recently. Ethanol margins are pushing higher and Chinese demand possibilities are keeping the market optimistic. The crush report for the month was favorable for soybeans as 2 million more bu. were crushed than the trade had expected. Managed money is at a 52 week high on short contracts for corn and soybeans have been trending positive and are now net long for 2 weeks in a row. 

Numbers to keep an eye on remain the same. July corn futures need to push past $3.23 to hopefully find a floor. Closing above $3.30 this week might be a sign of a bullish run, but it would take significant news to get there. July soybean futures are aiming at finding $8.55 again as we have a strong start to the week.