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June 2nd , 2020

CORN

Corn futures closed with small gains after another two-sided session. Nearby corn futures are back within its narrow range as news remains limited. A decent weather outlook offers resistance to the market, while the large net short position held by the corn funds offers support. The corn managed money was estimated to be net short over 260,000 contracts going into today’s session. The crop progress report showed that corn was 93% planted, up 5% from last week. North Dakota was able to advance to 75% planted compared to 54% a week ago. Planting/re-planting is taking place across the Midwest as the recent weather forecast has proved beneficial. Rain is expected yet this week with temperatures staying on the warm side. This should aid in crop development. Corn was rated 74% good to excellent, up 4% from last week. Most states saw an increase in ratings. The weekly ethanol report will be out tomorrow. Ethanol grind has been on a steady climb over the last few weeks with ethanol stocks steadily decreasing. We will see if those two trends continue in tomorrow’s report. The outside markets were generally supportive today with equities and crude higher and the dollar weaker

SOYBEANS

Soybeans finished higher, reversing the news cycle from just 24 hours ago. Yesterday it was reported that China had ordered its state-run grain companies to hold off on buying any U.S. soybeans. That narrative changed quickly yesterday afternoon as it was reported that China was the buyer of 3 to 5 cargoes of U.S. beans for this fall. The USDA this morning announced a sale of 132,000 tons of beans sold to China in 20/21. A positive tone to the outside markets helped beans as well today. Soybeans were estimated to be 75% planted, up 10% from a week ago. The first initial bean rating for the season came in at 70% good to excellent. Bean planting is continuing around the Midwest as field conditions are favorable.