Morning Comments May 16, 2020

Opening Calls:
Corn Up 5 To 6
Soybeans Up 5 To 6

US ethanol production last week rose to 309 million gallons from 305 million gallons the previous week, but was 0.7% below last year’s same-week production of 311 million gallons.  US ethanol stocks last week declined again to 935 million gallons from 944 million gallons the previous week as stocks have declined in six of the last seven weeks as is rather common this time of year.  The USDA’s weekly export sales report will be out later this morning. The trade is looking for corn sales of 300-900,000 mt.  The corn market is trading higher again this morning with the thought that the current planting window is not going to be open long enough for a lot of progress to be achieved. The weather forecast is not great with some forecasters predicting rain into early June.

The NOPA April crush report out yesterday morning was a little disappointing coming in at 160 million bushels vs. the average trade estimate of 161.6 million bushels.  The average trade guesses for this morning’s export sales are as follows: soybeans 300-900,000 mt, meal 125-400,000 mt and bean oil 5-25,000 mt.  This morning soybeans are trading higher with the weather forecast once again supporting prices. The lack of planting progress in key areas is still a big issue and should continue to support prices.

The June dollar index is trading 4 points lower this morning at around 97.34.

This morning the June crude oil contract is trading around $0.50 higher. The June contract is trading just above the $62.50 level.