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We kicked off the day with PPI MoM & YoY, Core PPI MoM & YoY, PPI, and PPI Ex Food, Energy, and Trade MoM & YoY at 7:30 A.M., Michigan Consumer Sentiment Prel, Michigan 5-Year Inflation Expectations Prel, Michigan Consumer Expectations Prel, Michigan Current Conditions Prel, and Michigan Inflation Expectations Prel at 9:00 A.M., Crop Production, USDA Supply/Demand and WASDE at 11:00 A.M., and Baker Hughes Oil & Total Rig Count at 12:00 P.M.

CBOT futures are lower in the expectation of a bearish USDA crop report this morning. The addition of planted US corn area and larger June corn/wheat stocks has traders expecting larger 2024/25 end stocks. The USDA will release the report at 11:00 A.M. central. The reaction of the market to the report, and not the report itself, will key price direction into the weekend. We also are at a pivotal time in the growing season and the bets are on what the US crop yield potential and the reality of what it is capable of. Remember managed money is heavy short. Thursday’s CBOT open interest data showed a decline in grains but an increase in soybeans. Corn open interest was down 7,668 contracts, Chicago wheat of 6,373 contracts and soybeans up 5,329.

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