Grains Report - Tuesday, June 2

DJ Thai Rice Prices Climb on Increased Demand, Says USDA — Market Talk
0146 GMT – Thai rice prices are higher, supported by demand for white and parboiled rice from Asian and African buyers, the U.S. Department of Agriculture says. It says foreign buyers began to seek Thai rice as prices of Thai and Vietnamese white rice are currently about the same after the Vietnamese government removed its rice export restrictions last month, compared with a typical price difference of around $15-$20 a metric ton. It notes Thai rice export prices increased 4% in the week ended May 25. (lucy.craymer@wsj.com)

CORN AND OATS
General Comments: Corn was a little lower on the improving crop conditions here in the US. USDA showed good progress and very good condition for the Corn crop last night.. Meats processors are back and are aiming to restore 80% to 85% of capacity kill rates in their plants. The backlog of Cattle and Hogs will slowly disappear under this scenario and meats wholesale and retail prices will fall. This will take some time, but it is starting to come to pass. Ethanol demand is also improving as lockdown orders are lifter in most states and in Europe. Demand for gasoline and ethanol has gotten a little stronger and should continue to improve over time. All this still implies that ending stocks for Corn as projected by USDA can increase, but the increase should not be as great as originally thought. Export demand is becoming more difficult with US prices quoted above those in Argentina and Ukraine. Corn can rally a little more before the current seasonal rally runs out of steam as the funds still hold a significant short position and as farmers are scale up selling into the rally.
Overnight News:
Chart Analysis: Trends in Corn are mixed to up with objectives of 346 July. Support is at 319, 315, and 312 July, and resistance is at 330, 332, and 340 July. Trends in Oats are mixed to up with objectives of 346 July. Support is at 323, 320, and 315 July, and resistance is at 335, 339, and 342 July.

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