Corn futures followed wheat lower this week but eventually found support as lower prices encouraged buying. The market is expecting USDA to trim 2023/24 corn stocks in the June WASDE report—but just a little bit. Export sales have been good, and corn use for ethanol is up about 5 percent from last season to date, in line with USDA’s current forecast. Late June will bring two reports that may be more impactful: Grain Stocks, which will give us a better idea of corn use for feed, and Acreage, which will pave the way for adjustments to 2024/25 S&D projections in the July WASDE.

Soybean exports increased week over week but remain lower in volume compared to last year. Last week’s shipment’s top destinations were China, Mexico, Turkey, the Netherlands, and Egypt, with China taking about 22.0 percent of U.S. soybean exports on the week of May 30.  

World raw sugar futures rallied from last Friday through this Thursday on weather concerns for key origins in southeast Asia. Most-active Jul-24 #11 raw sugar passed psychological resistance near 19.00 cents to reach a four-week high. Aug-24 #5 broke $560.00. The dollar index moved to the lower end of its four-week range, supporting a rally for crude oil futures above $75.50 per barrel, all supporting world sugar prices. For domestic #16 raw, Jul-24 and Sep-24 rebounded strongly above 38.00 and 37.00 cents, respectively.

Investors are concerned about a decline in economic growth. The long commodity index positions this year keep increasing and may signal a more dire situation than inflation. With the first quarter GDP OF 1.3 percent and the almost 24-month treasury yield curve inversion are symptoms of a slowing economy for the U.S and the global economy.

This report summarizes a small sampling of the information available on our IQ Ingredient Intelligence platform. Further insights, statistics, analysis, and pricing information for these commodities and others are available to IQ subscribers.

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Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.