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The day kicked off with the MBA 30-Year Mortgage Rate, the MBA Mortgage market Index, the MBA Mortgage Refinance Index, the MBA Purchase Index, and MBA Mortgage Applications at 6:00 A.M. Next, EIA Energy Stocks were seen at 9:30 A.M., followed by the 2-Year FRN Note Auction and 17-Week Bill Auction at 10:30 A.M., as well as the 5-Year Note Auction at 12:00 P.M. 

FOMC Minutes followed at 1:00 P.M., and we await the Cold Storage & Dairy Products Sales at 2:00 P.M.

On the corn front, the weather report showed GFS operational trend is wetter in the Eastern Corn Belt for a 12- to 14-day period. Meanwhile, the EU model forecasts Midwest dryness through June 8. The GFS operational model has added scattered and moderate rainfall to Iowa, Illinois, and Indiana until June 6 to 7. However, confidence is low that there will be precipitation.

Watching the weather, broadly stagnant upper air patterns will be in place not only in Central US, but much of the Northern hemisphere into the first week in June. It is forecasted there will be abnormal warmth that will persist across Canada and the Northern and Western parts of US where fires are more commonplace. 

It may be premature to discuss growing conditions in the late spring, but close attention should be paid to soil moisture as meteorological summer approaches. Dry soil tends to promote bouts of extreme summer heat.

My friend Tim Hannagan once told me, ”It is not what you plant, but what you grow.” I will continue promoting this phrase in this growing season as Mother nature continues to prove it true. Export Sales tomorrow could be an interesting number. In the overnight electronic session, the July corn is has been seen trading at 582 ¾, which is 5 ¼ cents higher. The trading range has been 583 ¼ to 574.

On the ethanol front, a Michigan company that was a dairy vodka producer teamed up with a Canadian company to come up with a whole new use for biofuels and ethanol. They will be joining forces with the dairy industry as ethanol margins remain high and investors become intrigued with other innovations. Unfortunately, the excitement does not spillover to the ethanol futures, with no trades seen and zero open interest.

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