SOYBEANS: LOWER
The EU contagion is in full bloom today. The USD is a pillar of strength and thus commodities traded in USD are all weaker as buying power is lowered and the economic impact of a poorer, financially strapped EU is being foisted upon the world once again. Ignoring the financial impacts of the EU problems is not possible, but in the big picture China demand is not likely to abate and any growth in demand is a problem in the world oilseed supply and demand tables. A minor hiccup in US production will once again create a bull market in the complex. Beans should lead the way with meal demand and oil demand scuffling for their fair share of the crush margin. So far, meal demand has kept the upper hand. US weather has continued to throw storms across the growing regions in ample enough quantity to provide good growing conditions. Planting is in the wrap up phase and now Mother Nature is in charge. Emergence and then crop conditions will be the driving factors each Monday evening moving forward. Cool temperatures should provide better conditions the next week. The 6-10 day is threatening less than desired moisture and warmer than normal temperatures. Open interest appears to have spec longs on the run. Basis is firm and spreads are removing some inverse and we finally are seeing carry in NC, even if minimal. OI: B/-5,819; M/-1,245 O/-2,499.

Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund