May 25, 2016

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Jul ‘16 404’6 +7’2 May ‘16 361’0 +7’0
Sep ‘16 407’2 +7’2 June ‘16 363’0 +7’0
Dec ‘16 408’4 +5’6 July ‘16 365’0 +7’0
Mar ‘17 415’2 +5’6 NC ‘16 360’0 +6’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jul ‘16 1085’4 +30’6 May ‘16 1010’0 +31’0
Aug ‘16 1081’6 +28’6 June ‘16 1010’0 +31’0
Sep ‘16 1065’4 +26’0 July ‘16 1010’0 +31’0
Nov ‘16 1054’2 +25’0 NC ‘16 983’0 +25’0

 

Soybean meal exploding higher and trading to new highs.

The dollar fell 221 points today and crude oil rallied $1.01 on a larger drawdown in crude oil stocks

Meal pulling soybeans higher as crush margins near $1.60/bu.

Corn also benefitting from meal’s rally as a feed substitute

Drier long-range forecasts made the trade nervous that bean acres may not be converted from corn

Rumors circulate that the Argentina crop quality is sub-par & contracts are being renegotiated.

Some talk funds are buying soybeans and meal on ideas we move to a La Nina state this summer

Ethanol production for the week averaged 946,000 barrels per day, down .27% from last week.

Ethanol stocks as of May 20th were 20.8 million barrels, down 1.3% from last week

May 25, 2016