Commodity Market Report, 1st of June 2020

Agricultural Commodities prices were mixed on Friday as Soybean prices tumbled as tensions between the U.S. and China rises. However, Wheat prices jumped on Friday as dry weather in the U.S. and abroad may negatively impact yields in some key production countries.

In weather updates, the upper Midwest could see some wet weather between today and Monday, with some areas gathering another 1” or more, per the latest 72-hour cumulative precipitation map from NOAA. Some areas farther south could also see some measurable rainfall over the weekend. The agency’s latest 8-to-14-day outlook predicts much warmer, drier weather throughout the Midwest and Plains from June 5 to June 11.

In energy news, OPEC oil output hit the lowest in two decades in May as Saudi Arabia and other members started to deliver a record supply cut, a Reuters survey found, although Nigeria and Iraq are laggards in making their share of the reduction. (Reuters)

WTI futures closed Friday’s session at 35.33 USD per barrel and currently trading at 35.36 USD at 8:30 GMT.

International Brent futures closed Friday’s session at 37.66 USD per barrel and currently trading at 38.03 USD at 8:30 GMT.

  

Wheat

CBOT Wheat July futures prices boosted to reach $5.21 on Friday’s session as dry weather conditions backed the U.S. Plains and among some key overseas competitors prompted some technical buying.

In Eastern Europe, Ukraine’s 2019/2020 wheat exports surpassed 742 million bushels so far. Total grain exports are expected to climb 17 percent above last year’s tally after harvesting record crops last fall.

Preliminary volume estimates were for 88,423 CBOT contracts, sliding below Thursday’s final count of 106,028.

Corn

CBOT Corn July futures closed the session lower at $3.25-1/5 on Friday on a round technical selling.

Corn basis bids softened 1 to 3 cents at multiple interior river terminals and firmed 2 cents higher at an Iowa processor while holding steady elsewhere across the central U.S. today.

In Europe, France’s 2020 corn crop planting progress reached 97 percent by May 25, per consultancy FranceAgriMer. The crop is in generally good shape so far, with 83 percent rated in good-to-excellent condition, although crop quality fell three points from a week ago.

Preliminary volume estimates were for 296,124 contracts, dropping about 25% below Thursday’s final count of 396,368.

 

Soybean

CBOT Soybean July futures prices fell to reach $8.40-1/2 on Friday as edgy relations with China triggered more technical selling.

 In U.S.-China news, China said on Monday U.S. attempts to harm Chinese interests will be met with firm countermeasures, criticizing a U.S. decision to begin ending special treatment for Hong Kong as well as actions against Chinese students and companies. (Reuters)

Preliminary volume estimates were for 167,500 contracts, moving slightly above Thursday’s final tally of 154,761.

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