Bean oil rallies to the highest prices in 9 years overnight.
May soyoil pushed to a new contract high of $58.25 overnight, following yesterday’s rare limit up close. Midwest cash soyoil basis rose to a new rally high on strong demand from food and ethanol sectors. The overnight high was very near record high prices seen back in 2010-2011. Reference yesterday's newsletter chart.
Central IL corn basis closed at 21-22 cents over May corn futures on Monday, which like soyoil, is trading at a historically strong basis due to the demand pull from China. FAS/USDA will be releasing large weekly US corn export sales totals on Thursday which should push US corn sales commitments over 2,550 Mil Bu, or 99% of the USDA annual export forecast.
Wheat futures again were lower overnight with Kansas City wheat making a new calendar low as yesterday's Plains states condition ratings reports showed another improvement along with overnight rainfall. The USDA starts putting out their winter wheat ratings numbers on Monday, April 5. The USDA’s ag attaché in Cairo estimated that Egypt would import a record 13.2 MMTs of world wheat in the 2021/22 crop year amid rising demand for flour. Egypt is the world’s largest wheat importer.
Oil prices were lower overnight as Europe continues to roll into lockdowns and you can now add Germany to the list for another lockdown to control a new Covid outbreak. The “Until Easter” lockdown cast doubt on Europe's nascent economic recovery. The EU’s roiling Covid troubles pushed WTI crude oil futures to sharp losses with the May contract priced at $59.00 or down $2.56/barrel. The US dollar rallied on the lockdown news.
Cattle futures closed better yesterday after a neutral Friday Cattle on Feed Report. The cash cattle markets were quiet to start the week, but the beef market had a solid start which added to packer slaughter margins. A directional move from $114 is due and a firm outlook is offered at the start of the week. Boxed beef values moved higher on Monday. The choice cutout added $.96 and was at $230.95 while select jumped $3.10 to $223.05.