Crop conditions starting at high levels

Overnight- Mixed markets overnight. Corn and wheat are slightly higher with soybeans a little lower.

The first soybean conditions report came out at 72% GTE which was the highest since 2018 and corn conditions dropped 1% to 74% GTE.

No one is surprised with these ratings although we hear about some rough looking corn in N IA/S MN for what it is worth.

We have the June WASDE tomorrow which is usually not a big mover unless there were significant planting issues and our issues this year do not warrant any production moves. Corn demand could move higher in ethanol.

World numbers is where some supportive news could come our way.

The USDA is the highwater mark for many worldwide production numbers- Brazil corn & soybeans, Argy corn and Russian wheat all could/should be dropped. The amount of the cuts could provide some supportive price action.

Traders are still trying to decipher Brazil’s cutting of the soybean tax credit and if the congress will uphold it in four months but right now it has made the US soybeans more competitive on the world market which is nice!

Bottomline

We will focus on WASDE and Conab the next two days along with the weather forecast. We see a flash sale of 104K tons of soybeans to China and more of that could be a game changer. Watch to see if we get any pops on tomorrow’s report to sell as we are off to a good start production-wise. NFC Grain Comments Options -new (61)

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