Thursday June 2, 2022

  • Markets got turned around again yesterday as wheat continued its fall from grace with the looming opportunity for Ukrainian grain to be back available to the global markets
  • Again attempting a slight recovery across the board this morning but we will see if the gains can hold through the day trade
  • India has allowed another nearly half a million MT of wheat shipments since banning exports last month 
    • It is reported there is an additional 1.7 MMT still at ports as well
  • StoneX updated their Brazilian soybean production estimate by 1 MMT to 124.4 MMT, corn also up slightly this month to 116.8 MMT 
  • Ukraine’s grain traders union (UGA) estimated 2022 wheat production at 19.2 MMT – a year on year decline of 42%, corn down from 37.6 MMT to 26.1 MMT 
    • They are hoping to export 10 MMT of wheat and 15 MMT of corn through their harvest – however this would be dependent on export capacity doubling from current pace 
  • U.S. soybean crush for April came in yesterday at 180.9 million bu – slightly above estimates but still lower than March 
  • U.S. corn used for ethanol for April was also down from March coming in at 414.7 million bu, but still ahead of the same month last year