- As of 7:00 AM CT: US dollar index is unchanged at 80.0059, European Stoxx is up .23%, Nikkei closed down .24%, Hang Seng closed up .01%, crude oil up 85 cents at $103.18 per barrel, and gold is down $4.50 at $1290.10 per ounce.
- Weather forecasts are still showing improvement in both the Southern Plains and the northern tier of the Midwest. Moisture replenishing rains are expected in the Southern Plains while the Upper Midwest is expected to be warmer and drier aiding planting efforts.
- Russian billionaires are assembling at the St. Petersburg Economic Forum this week as they weigh the market fallout from Russian/Ukrainian tensions. Investments have continued to flow out of Russia throughout this situation.
- July corn futures have moved lower the last 5 trading sessions, as advancing planting progress and adequate moisture weigh heavily.
- Warmer temperatures this week are a major benefit to early crop development for areas that are planted.
- Producer selling has been light with the focus continuing to be on planting the crop. Basis levels have been steady.
- Industry participants are looking for another strong ethanol production number (920K barrels/day) this morning, as margin are very profitable and seasonal ethanol demand is strong.
- After a cool and wet spring that has delayed planting, a Democratic Senator from North Dakota is calling on the U.S. Department of Agriculture to delay the May 25th crop insurance corn planting deadline that is in place for most North Dakota counties.
- The SN/SX inversion currently sits at $2.37 ¾. The contract high for this spread is $2.77 which was established in mid-April.
- Eastern crush margins have fallen to 60-65 cents and western margins are down to 40-45 cents. Crush margins are getting close to not being able to cover variable costs.
- Brazilian farmer selling is strong while Argentinean farmer selling is light with slow harvest progress.
- Two additional Brazilian bean cargos are anticipated to land in U.S. ports later this week. With the addition of these 2 a total of 7 will now have come into the U.S. since April.
- China bought 111 tmt of optional origin soybeans for the 2014/15 crop year yesterday.
- China’s second soybean auction saw 82% of offered beans sold.
- Spring wheat planting pace should continue to accelerate as we move further into the week.
- Forecasters are calling for the first general rain in a number of weeks for the HRW region for Thursday into the weekend. Although the HRW crop is probably beyond the point of adding yield, these rains should help maintain what is already there.
- There are yield concerns for Black Sea wheat, as temperatures are forecast to be above 90 degrees in the wheat growing regions of southeast Russia and Kazakhstan toward the end of the week. In some of these areas less than 20% of their normal rainfall has been received.