Afternoon Soybeans: Soy complex recovery continues for third day.
The soybean market continued its recovery by settling higher for a third session in a row. July beans gained 33 ¼ and the new crop November contracts added 29 ¾. Bull spreading remained a feature as did strength in the products. The crop progress report showed the soybean crop rating dropped 3% following the intense heat in the early part of last week and drying that most notably impacted crops in the ECB states. At 65% G/E and 8% P/VP, this year's crop is still in much better condition than it was at this time last year when the rating was 60% G/E and 9% P/VP. The near term weather outlook is not ideal but with less heat and hopefully enough timely rains to keep crops in decent shape overall through the first half of July.
In the product trade, July meal provided leadership from the front end of the meal curve and settled at a two-month high with tomorrow being position day ahead of deliveries. The new crop December meal also had a strong showing with its $6 rally but that chart is range bound at the moment. Bean oil, like beans, extended its recovery with a third positive settlement in a row following its recent 10 session break. Malaysian palm oil and canola were both firmer but bean oil likely found more inspiration from the $2+ gains over in crude oil. The oil share was mixed with meal gaining in the July contracts while oil led in the deferred months. Board crush margins added 8 cents up front to $1.30/bushel while the new crop crush lost a nickel to $1.52/bushel. Spot cash crush margins in C IL are back to 20 cents better than the board.
First notice on July futures is Thursday so longs will need to be out by tomorrow's close to avoid delivery risk. The CME shows no change in registrations of 0 corn, 0 beans, 0 meal, 98 oil, 1,010 srw, and 66 hrw receipts.
Elsewhere in the news, Brazil's soybean exports in June are forecast at 10.154 mmt, down from 10.795 mmt a week ago according to ANEC. Meal exports forecast at 2.209 mmt down from 2.271 mmt prior.
Malaysian government officials called on palm oil millers to resume production and buy oil palm fruits from farmers, after a plunge in prices of the edible oil prompted some companies to halt processing.
Crop progress report showed soybean planting moved up 4 to 98% complete, emergence moved up 8 to 91%, and 7% of the crop is in its blooming stage. Conditions fell 3% week over week to 65% G&E, with P&VP moving up 3 to 8%. This compares to 60% G&E and 9% P&VP this time last year. Only a few states improved week over week (ND +5%, KS +2% and SD +1%). KY was off 24%, NC was off 15%, TN was off 14%, MS was off 12%, IN was off 9%, NB and OH were each off 6 to 7% while LA, MN, and WS were off 3 to 4%.
US Gulf steady +89
Brazil Paranagua off 5 to +155
Sioux City, IA steady +25q
Mankato, MN steady +20q
Decatur, IL steady +140q
Claypool, IN steady +50n
Columbus, OH off 30 to +75q