Ag Market View for May 18.22

SOYBEANS

Soybeans ended lower. Some feel 17.00 SN may be too high for now and may be rationing demand. Still in August US crush and soybean demand could be near record high which could send prices back over resistance. USDA announced US old crop and new crops soybean sales to unknown. Weekly old crop soybean sales is est near 150-500 mt and new crop 50-600. 

CORN

More talk of US recession and slower World economies have triggered selling in most commodities. On days like this, the glass is half full. Unexpected steep decline in top US retail companies earnings raised concern about consumer demand. Consumers are being hit by higher energy and food prices. Retail companies said cost of moving product to shelves were a lot higher than expected. This is not expected to change anytime soon. Corn futures ended lower. Some feel 8.00 CN may be too high for now and may be rationing demand. Still in Q4 demand could be near record high which could send prices back over resistance. Weekly US ethanol production was near last week and down 4 pct from ly. Stocks were down 1 pct from last week but still up 22 pct from ly. Weekly old crop corn sales is est near 150-450 mt and new crop 500-900. There were rumors that Russia may allow a corridor of Ukraine grain to leave Odessa if NATO members allow Russia Fertilizer exports. Most doubt this and suggest buying this break.

WHEAT

Wheat futures ended sharply lower. There were rumors that Russia may allow a corridor of Ukraine grain to leave Odessa if NATO members allow Russia fertilizer exports. Some feel 13.00 WN and 14.00 KWN may be too high for now and may be rationing demand. Still, USDA is estimating World exporters stocks to use ratio record low with demand uncovered and supply tightening. Weekly old crop wheat sales is est near -50-150 mt and new crop 50-250. So far, Annual US HRW crop tour has found 40 mil bu crop in CO vs 69 ly, 37 in NE vs 41 ly, 60 in OK vs 115 ly and 41 in TX vs 74 ly. USDA est KS crop near 271 vs 364 ly. 5 state total 449 vs 663 ly.

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