Friday May 31, 2024

• Markets are sitting slightly higher this morning.
• Traders are covering shorts and wrapping up positions as we head into the end of the week/month
• Chinas largest wheat growing province is about 40% done harvest, the province produces 1/4 of the countries wheat. Last year quality was low but this year they’re expecting higher yields and better quality. Chinas wheat prices are 15% lower than a year ago
• Wheat hit its 10 month high earlier this week because of drought and frost in the Black Sea. Now traders are talking about a hot wind from the east that could threaten crops in southern Russia
• Ukraine is expected to begin their wheat harvest next week, this is earlier than their usual mid June star
• July and December corn contract traded and settled back below their 100 and 50 day moving averages
• There is still lots of time before the crop is in the bin. With the growing season just starting and economic inflation fears on the rise we do have a recipe for risk premium. However, on the fundamental side there is still room for the market to move lower if we don’t see any weather concerns
• The Midwest is set to receive another round of rain