Agricultural Commodities prices landed in the green zone on Wednesday supported by strong demand for U.S. cargoes and a softer American dollar.
In weather updates, scattered showers will stretch across the Central Mississippi River Valley and into the Eastern Corn Belt today, according to NOAA's short-range forecast. The precipitation system will linger over the area through tomorrow while another system moves in the Central Plains from the Rocky Mountains.
In energy news, Oil prices seesawed on Wednesday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.
WTI futures closed Wednesday’s session at 36.68 USD per barrel and currently trading at 36.71 USD at 11:00 GMT.
International Brent futures closed Wednesday’s session at 39.40 USD per barrel and currently trading at 39.51 USD at 11:00 GMT.
CBOT Wheat July futures prices rose to reach $5.12-3/4 on Wednesday’s session after conflicting yield reports out of the European Union and early harvest progress in the Southern Plains supported rising wheat prices.
In the United States, North Dakota spring wheat is 78 percent emerged with 80 percent rated in good to excellent condition. Montana, meanwhile, is seeing 83 percent emergence, well ahead of last year’s 54 percent, and the five-year 74 percent average.
In Eastern Europe, Ukraine announced yesterday they would be slashing 2020/2021 exports by 37.6 percent to 547.4 million bushels after forecasted production of the new fell to 979.1 million bushels
CBOT Corn July futures finished the session flat at $3.24, Corn futures struggled to keep pace with wheat and soybeans Wednesday, despite another pick up in U.S. ethanol production.
Ethanol demand for blending has risen 43.4 percent since the early days of the pandemic to 30.2 million gallons/day of demand from refineries but remains nearly 21.7 percent lower than pre-pandemic demand levels.
CBOT Soybean July futures prices boosted on Wednesday’s session as a stronger Brazilian real and weakening U.S. dollar sent Chinese buyers flocking to American soybeans, and closed at $8.57-3/4.
In South America, Brazil’s May soybean exports jumped 45 percent on the year to reach 15.5 million mt, the second-highest monthly soy shipment ever, the latest foreign trade department data released on June 1 showed,
USDA announced a 6.8 million-bushel soybean sale to an unknown buyer earlier today. Many analysts believe the shipment will go to China after a Reuters report on Monday found state-owned Chinese firms to have booked soybean purchases despite orders from Beijing to ignore American pork and soybean availability amidst rising diplomatic tensions.
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