Grains Report 05/08/2024

DJ CBOT Delivery Intentions: Totals – May 8
Source: CME Group
Contract Quantity Next Trade
Commodity Month Delivery Day Assigned Today Date Available
SOYBEAN OIL May May 09, 2024 42 May 01, 2024
CORN May May 09, 2024 58 Apr 29, 2024
SOYBEAN May May 09, 2024 6 May 03, 2024
WHEAT May May 09, 2024 40 May 07, 2024

WHEAT
General Comments: Wheat was lower yesterday in correction trading after the recent rally. The weather is still a key, with extreme dryness reported in Russia and parts of the US and too wet conditions reported in Europe. The weekly export sales report showed poor sales once again and sales are not likely to improve anytime soon with the Dollar strength. Big world supplies and low world prices are still around. Export sales remain weak on competition from Russia, Ukraine, and the EU as those countries look to export a lot of Wheat in the coming period. Black Sea offers are still plentiful, but Russia has been bombing Ukraine again and shipments might be hurt from that origin.
Overnight News: The southern Great Plains should get mostly dry conditions. Temperatures should be above normal. Northern areas should see mostly dry conditions. Temperatures will average above normal. The Canadian Prairies should see mostly dry conditions. Temperatures should average above normal.
Chart Analysis: Trends in Chicago are mixed. Support is at 610, 596, and 593 July, with resistance at 661, 667, and 673 July. Trends in Kansas City are up with no objectives. Support is at 664, 637, and 630 July, with resistance at 682, 688, and 604 July. Trends in Minneapolis are up with objectives of 747 July. Support is at 709, 705, and 696 July, and resistance is at 733, 738, and 746 July.

RICE
General Comments: Rice closed lower in old crop months again yesterday, but higher in new crop months as spreads got adjusted for another day. The futures market overall remained in a short term trading range. Support comes from adverse weather in South American growing areas while new selling is noted from the potential for a big crop in the US. The big US crops are now in doubt from reports of extreme rains in southern growing areas and especially near Houston. Supply tightness is expected to give way to increased production this year and greatly increased supplies this Fall. These ideas are reflected in the prices seen in the cold crop and the new crop.
Overnight News:
Chart Analysis: Trends are down with no objectives. Support is at 1827, 1785, and 1750 July and resistance is at 1915, 1955, and 1972 July.

DJ USDA World Market Rice Prices – May 8
USDA today announced the prevailing world market prices
of milled and rough rice, adjusted for U.S. milling yields
and location, and the resulting marketing loan gain (MLG)
and loan deficiency payment LDP) rates. Source: USDA
—–World Price—– MLG/LDP Rate
Milled Value Rough Rough
($/cwt) ($/cwt) ($/cwt)
Long Grain 23.97 14.54 0.00
Medium/Short Grain 23.49 15.77 0.00
Brokens 14.50 —- —-
This week’s prevailing world market prices and MLG/LDP
rates are based on the following U.S. milling yields and
the corresponding loan rates:
U.S. Milling Yields Loan Rate
Whole/Broken ($/cwt)
(lbs/cwt)
Long Grain 48.82/19.56 6.76
Medium Grain/Short Grain 61.56/9.04 7.04

CORN AND OATS
General Comments: Corn and Oats closed mixed to higher yesterday on fund buying tied to reports of adverse production conditions in South America. The Argentine crop has been hit by stunting disease that robs yields and the Brazil Winter crop is suffering from hot and dry weather. Demand has been the driving force behind the rally but now South American weather is the driving force. Increased demand was noted in most domestic categories along with rising basis levels, and export demand has been strong. Ethanol demand has turned less due to weaker petroleum prices seen lately. There is very dry weather for the Winter crops in central and northern Brazil
Overnight News:
Chart Analysis: Trends in Corn are up with objectives of 470 July. Support is at 460, 454, and 450 July, and resistance is at 470, 477, and 483 July. Trends in Oats are up with no objectives. Support is at 383, 378, and 362 July, and resistance is at 402, 408, and 414 July.

SOYBEANS
General Comments: Soybeans and the products closed mostly higher yesterday, with Soybean Meal higher and Soybean Oil lower. Support for Soybeans came from reports of excessive rains falling on unharvested crops in southern Brazil. Rains up to 400 mm were reported by newswires. Ideas of less bio fuels demand have hurt Soybean Oil prices. Some selling from Brazil and Argentina was noted on the early rally attempt last week. Reports of great export demand in Brazil provide some support. Reports indicate that China has been a very active buyer of Brazil Soybeans this season. Ideas that South American production is taking demand from the US have pressured futures lower. Domestic demand has been strong in the US but has suffered as crushers were crushing for oil. Oil demand has suffered as cheaper alternatives for feedstocks hit the bio fuels market. Funds remain short in the market.
Overnight News:
Chart Analysis: Trends in Soybeans are up with objectives of 1248 July. Support is at 1401, 1221, and 1216 July, and resistance is at 1260, 1269, and 1280 July. Trends in Soybean Meal are up with no objectives. Support is at 375.00, 370.00, and 361.00 July, and resistance is at 390.00, 393.00, and 397.00 July. Trends in Soybean Oil are mixed. Support is at 4260, 4200, and 4140 July, with resistance at 4530, 4610, and 4690 July.

CANOLA AND PALM OIL
General Comments: Palm Oil was lower last week on weaker bio fuels demand but found some support late in the week on reports of strong demand from India and reports of reduced production. Trends are down on the daily and weekly charts. Canola was higher despite weaker prices in world vegetable oils markets. Farmers concentrate on fieldwork and not selling.
Overnight News:
Chart Analysis: Trends in Canola are mixed. Support is at 660.00, 639.00, and 616.00 July, with resistance at 672.00, 679.00, and 589.00 July. Trends in Palm Oil are mixed to down with objectives of 3790 and 3650 July. Support is at 3780, 3740, and 3700 July, with resistance at 3930, 4020, and 4040 July.

Midwest Weather Forecast Mostly dry. Temperatures should average near to below normal.

Corn HRW SRW Soybeans Soybean Meal Soybean Oil
May 55 May 150 May
50 May
60 May

June 48 July 135 July 40 July 54 July

July 50 July 135 July 40 July 60 July

DJ Malaysian PM Cash Market Prices for Palm Oil – May 8
The following are prices for Malaysian palm oil in the cash market at 1000 GMT Wednesday, supplied by commodity broker Matthes & Porton Bhd.
Prices are quoted in U.S. dollars a metric ton, except for crude palm oil and palm kernel oil, which are in ringgit a ton. Palm kernel oil prices are in ringgit a pikul, a Malaysian measurement equivalent to 60 kilograms.
Refined, bleached and deodorized palm oil, FOB, Malaysian ports
Offer Change Bid Change Traded
May 860.00 -07.50 Unquoted – –
Jun 855.00 -07.50 Unquoted – –
Jul/Aug/Sep 850.00 -07.50 Unquoted – –
Oct/Nov/Dec 852.50 -10.00 Unquoted – –
RBD palm olein, FOB, Malaysian ports
Offer Change Bid Change Traded
May 865.00 -07.50 Unquoted – –
Jun 860.00 -07.50 Unquoted – –
Jul/Aug/Sep 855.00 -07.50 Unquoted – –
Oct/Nov/Dec 857.50 -10.00 Unquoted – –
RBD palm stearin, FOB, Malaysian ports
Offer Change Bid Change Traded
May 890.00 -05.00 Unquoted – –
Palm Fatty Acid Distillate, FOB Malaysian ports
Offer Change Bid Change Traded
May 800.00 -02.50 Unquoted – –
Crude palm oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
May 3,970.00 -10.00 Unquoted – –
Palm kernel oil, Delivered Basis, South Malaysia
Offer Change Bid Change Traded
May 296.00 -03.00 Unquoted – –
($1=MYR4.743)

DJ China Dalian Grain Futures Closing Prices, Volume – May 08
Soybean No. 1
Turnover: 122,118 lots, or 5.74 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
May-24 4,700 4,712 4,700 4,704 4,668 4,705 37 198 876
Jul-24 4,724 4,735 4,674 4,682 4,688 4,703 15 93,554 100,648
Sep-24 4,706 4,726 4,671 4,677 4,678 4,698 20 25,381 37,303
Nov-24 4,647 4,667 4,624 4,629 4,631 4,642 11 930 5,183
Jan-25 4,630 4,655 4,612 4,614 4,619 4,631 12 1,927 7,275
Mar-25 4,620 4,641 4,605 4,605 4,609 4,623 14 128 485
Corn
Turnover: 696,902 lots, or 17.02 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
May-24 2,405 2,415 2,405 2,415 2,395 2,411 16 275 52,455
Jul-24 2,435 2,452 2,434 2,446 2,427 2,442 15 476,776 710,063
Sep-24 2,462 2,470 2,453 2,462 2,447 2,461 14 130,997 396,271
Nov-24 2,408 2,421 2,403 2,413 2,399 2,414 15 50,155 117,474
Jan-25 2,385 2,404 2,385 2,399 2,382 2,396 14 32,789 108,643
Mar-25 2,394 2,407 2,390 2,400 2,391 2,399 8 5,910 11,272
Soymeal
Turnover: 2,449,047 lots, or 87.62 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
May-24 3,474 3,501 3,462 3,481 3,451 3,474 23 3,072 3,295
Jul-24 3,491 3,521 3,471 3,507 3,478 3,496 18 66,664 143,396
Aug-24 3,572 3,609 3,560 3,591 3,559 3,587 28 21,412 73,398
Sep-24 3,575 3,612 3,563 3,594 3,556 3,587 31 2,093,968 2,323,885
Nov-24 3,555 3,598 3,551 3,588 3,539 3,575 36 72,722 146,230
Dec-24 3,544 3,589 3,544 3,576 3,534 3,568 34 6,342 20,566
Jan-25 3,490 3,533 3,487 3,515 3,479 3,510 31 175,327 340,748
Mar-25 3,330 3,362 3,325 3,344 3,322 3,343 21 9,540 19,278
Palm Oil
Turnover: 795,761 lots, or 6.00 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
May-24 7,776 7,800 7,776 7,800 7,754 7,794 40 248 1,445
Jun-24 7,650 7,684 7,584 7,606 7,618 7,626 8 9,465 9,939
Jul-24 7,604 7,628 7,520 7,534 7,562 7,562 0 5,831 6,241
Aug-24 7,556 7,610 7,494 7,496 7,518 7,544 26 463 1,150
Sep-24 7,550 7,606 7,480 7,492 7,510 7,536 26 738,299 527,561
Oct-24 7,540 7,578 7,476 7,488 7,488 7,524 36 106 474
Nov-24 7,510 7,576 7,456 7,498 7,486 7,518 32 50 767
Dec-24 7,508 7,562 7,466 7,466 7,474 7,520 46 114 524
Jan-25 7,510 7,572 7,458 7,474 7,480 7,514 34 40,440 97,995
Feb-25 7,484 7,550 7,454 7,468 7,480 7,494 14 98 282
Mar-25 7,472 7,538 7,444 7,474 7,468 7,486 18 617 2,087
Apr-25 7,494 7,526 7,474 7,476 7,482 7,488 6 30 44
Soybean Oil
Turnover: 521,934 lots, or 40.76 billion yuan
Open High Low Close Prev. Settle Ch. Vol Open
Settle Interest
May-24 7,750 7,750 7,730 7,730 7,688 7,742 54 50 2,043
Jul-24 7,762 7,792 7,708 7,732 7,746 7,746 0 7,172 20,805
Aug-24 7,768 7,818 7,738 7,754 7,770 7,772 2 1,981 15,459
Sep-24 7,794 7,852 7,760 7,780 7,790 7,804 14 470,097 768,305
Nov-24 7,820 7,868 7,782 7,798 7,808 7,822 14 1,485 8,546
Dec-24 7,874 7,930 7,842 7,858 7,874 7,884 10 140 1,917
Jan-25 7,862 7,924 7,830 7,848 7,836 7,874 38 40,169 123,273
Mar-25 7,752 7,796 7,712 7,736 7,726 7,752 26 840 2,638
Notes:
1) Unit is Chinese yuan a metric ton;
2) Ch. is day’s settlement minus previous settlement;
3) Volume and open interest are in lots;
4) One lot is equivalent to 10 metric tons.

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