Highlights
The Corn Belt continues to have a lot more rain predicted than what actually falls.
After last week’s $1+ lower wheat prices, all the major government wheat buyers issued tenders to save a few (or many) bucks per ton by Saudi Arabia, Bangladesh, Algeria, Tunisia, Japan and on and on. Egypt did contract to buy 180,000 mt of wheat from India just today.
It does look like the large international corn buyers are standing aside for now with the hope of lower prices to come. Argentina is the lowest cost corn supplier.
Let's Talk Soybeans a little bit...
Mexico is the world's second leading soybean importer, but China imports 18 times more beans than Mexico.
Surprise? Yes!
The World Top Soybean Importers in 2020:
China - 60% of the world imports ($39 billion)
Mexico - 3.41% ($2.22 billion)
Argentina - 3.04% ($1.98 billion)
Netherlands - 2.67% ($1.74 billion)
Thailand - 2.46% ($1.6 billion)
Egypt - 2.45% ($1.6 billion)
For you soybean growers, you should pay more attention to what is going on in China.
Here is the annual US soybean exports since 2005:
Here is the export sales tracker through the middle of June we sent you Saturday morning:
What you should have noticed:
Aside from the two Trump China trade war years, US soybean exports are in a very nice uptrend.
The 2020-21 marketing year saw a record US soybean exports.
The old crop soybean export sales pace is 2.4% less than a year ago and the USDA projected 4% less. With 2 months left in the marketing year and Brazil running out soybeans to export because of the drought for the recently harvested crop.
The new crop soybean export sales pace is more than 74% ahead of the USDA's new crop soybean projected exports.
The new crop soybean export sales pace is an out-of-control monster. Note the circled area.
Gosh, do you think the USDA may increase new crop soybean exports on future S&D reports?
Market Data
This morning:
Crude oil settled at $107.63, up $0.01
The dollar index settled at 104.01, down 0.17
July palm oil settled at 4,895 MYR, up 95. The contract high was made April, 29th at 7,229 MYR. Palm oil owns 36% and soybean oil owns 28% world market share.
December cotton settled at $96.36, down $1.69 per cw. The contract high was made May, 17th at $133.79 per cwt. Cotton competes with soybeans and corn for acres.
July natural gas settled at $6.155, down 0.065. The contract high was made June, 8th at $9.664. Natural gas is the primary cost to manufacture nitrogen fertilizer.
July ULSD settled at $4.3462 per gallon, down 0.0167. The contract high was made June, 17th at $4.6444. ULSD stands for Ultra Low Sulfur Diesel.
Rain Days Update
The Western Corn Belt has 6 more rain days in the 10 day forecast than yesterday and the Eastern Corn Belt has 1 less rain daysthan yesterday.
The 6 to 10 day forecast updated every day at: https://www.cpc.ncep.noaa.gov/products/predictions/610day/
Explanation of Rain Days
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