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Commodity Market Report, 8th of June 2020

Agricultural Commodities were mixed on Friday supported by strong demand for U.S. Dollar.

In weather updates, scattered showers will move through the Northern Plains and Eastern Corn Belt through the weekend, according to NOAA's short-range forecast. But warm temperatures will help to dry out any soils that become overly saturated this weekend, with temperatures ranging between the 80’s – high 90’s across most of the Midwest and Plains over the next couple days.

In energy news, Oil prices boosted on Friday, as the market appears confident that the OPEC+ group will extend the current level of production cuts for one month after June at a meeting scheduled for Saturday.

WTI futures closed Friday’s session at 38.96 USD per barrel and currently trading at 38.26 USD at 15:30 GMT.

International Brent futures closed Friday’s session at 41.89 USD per barrel and currently trading at 41.02 USD at 15:30 GMT.

  

Wheat

CBOT Wheat July futures prices fell to reach $5.14-3/4 on Friday’s session after despite hot and dry forecasts in the Southern Plains this weekend.

In Europe, French exports hit a five-month low at 46.0 million bushels in May as global export demand stalled due to the coronavirus pandemic.

In Russia, One of Russia’s largest grain-producing states, Stavropol, cut yield estimates by 40 percent from last year’s crop on a cold winter and drought conditions to 139.6 million bushels.

 

Corn

CBOT Corn July futures rose and finished the session at $3.31-1/4, Corn prices continued higher along with energy prices on Friday.

In Latin America, Argentine corn harvest, which is expected to yield 2.8 billion bushels, is over halfway finished with 55.6 percent of acres completed for harvest.

In Eastern Europe, Ukraine is nearly finished with their spring planting season. As of Friday morning, 98 percent of the crops had been planted.

 

Soybean

CBOT Soybean July futures prices were almost flat on Friday’s session on another round of export sales announced by USDA Friday morning. 

According to USDA, export sales of 258,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 60,000 metric tons is for delivery during the 2019/2020 marketing year, and 198,000 metric tons is for delivery during the 2020/2021 marketing year.

It remains unlikely China will be able to meet its Phase 1 trade agreement purchase levels in 2020 despite this week’s purchases.

 

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