Wheat futures were all lower.
KC HRW July was down 4.9%.
Chicago SRW was down 2.6%.
Minneapolis spring wheat was better, supported by ongoing heat and dry weather in the Dakotas, Montana and Minnesota, however, it still lost 0,28%.
Corn futures dropped 4.3%.
Soybean futures sank 7.5% on top of a 4.8% decline the previous week.
Soy Meal was down 2.6%.
Soybean oil was down a shocking 13.2%.
Expansion plans for green energy from ethanol or biodiesel has been slowed by high prices for the corn or soy inputs.
Meantime, Congressmen (or women) with oil refineries in their districts lobby their own Administration to iusse hardship waivers so they can sell more crude oil based products rather than pay up for biofuels or RINs.
In this context, the potential loss of biodiesel and renewable diesel use was condered a big issue by investors.
Consequentially, soybean oil tumbled, and losses in bean oil, was the main reason for the soybean weakness.
Meanwhile also cheaper competing oils has been a problem, with Malaysian Palm oil futures were down 3.3% for the week, starting with a 7.7% loss on Monday and then fighting their way back.
On macro markets, oil prices had started down for the second straight session on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but at last finished the week whit little gains and only slightly off multi-year highs.
Brent crude futures indeed, were up 0,6 cents closing the week at $73.19 a barrel after a 1.8% decline on Thursday.
Also U.S. West Texas Intermediate (WTI) crude futures were up 0,6 cents, to close the week at $71.40 a barrel, after retreating 1.5% on Thursday.
On last Wednesday, Brent settled at its highest price since April 2019 while WTI settled at its highest since October 2018.
The dollar has rocketed in the two sessions after the U.S. Federal Reserve projected possible rate hikes in 2023, earlier than market watchers previously expected.
A rising dollar makes commodities more expensive in other currencies, even if curb the demand.
The U.S. Dollar Index increased from last week’s 90.59 to close at 92.20.
In this context, the Baltic Dry Index (BDI), an assessment of the average cost to ship raw materials such as grains, coal and iron ore, gained 22% on the week to end at 3,267.
However investors remain skittish about inflation and the possibility of interest rate hikes.
Consequentially, on Wall St., the Dow dropped 1189 points on the week, closing to 33,290.
It look likely the close out worst week since January for the Dow.
The S&P 500 futures tumbled 81 point on the week to close at 4.166.
The Nasdaq composite was better, closing the week at 14.030, but it still lost 39 points week over week.
Coming back on grains market, US crop condition/progress reports, released on Monday, were generally supportive.
Corn conditions 68pc rated good-to-excellent (G/E) vs. 72pc last week & 71pc last year
Bean conditions 62pc G/E vs. 67pc last week & 72pc last year
Spring wheat conditions at 37pc G/E, vs. 38pc last week and 81pc last year
Barley conditions at 45pc G/E, vs. 43pc last week & 77pc last year
Winter wheat harvested 4pc, vs. 2pc last week & 15pc ave
Winter wheat conditions at 48pc G/E, vs 50pc last week & 50pc last year.
This week’s wheat commercial sales for marketing year 2021/22 were down from last week to 287,100 metric tons (MT), in line with trade
expectations of 200,000 MT to 500,000 MT.
Year-to-date commercial sales for delivery in 2021/22 total 5.8 MMT, 8% behind last year’s pace.
USDA expects the total 2021/22 U.S. wheat exports to reach 24.5 MMT, 9% below last year, if realized.
Cumulative corn export shipments have reached 2.148 billion bushels.
Unshipped old crop sales commitments are both an opportunity and a liability, with more than 14.743 MMT (580 mbu) still on the books.
Advance commitments for next year are record large.
Soybean export sales were just about non-existent, with one 65,300 MT vessel of old crop sold, and 6,500 MT for 2021/22.
World buyers are focused on cheaper South American offerings.
NOPA soybean crush for May was about 2 million bushels smaller than the average trade estimate.
Oil yields were up, as crushers concentrated on maximum extraction at then record high prices.
NOPA Soy oil stocks were lower.
Going inside the numers, CBOT soft red winter (SRW) futures shed 18 cents to close at $6.62/bu.
KCBT hard red winter (HRW) futures were down 32 cents to end at $6.06/bu.
MGE hard red spring (HRS) futures fell 2,2 cents to close at $7.62/bu.
CBOT corn futures lost 29 cents to end at $6.55/bu.
CBOT soybean futures shed $1.12 cents to close at $13.96/bu.
On the other hand, also basis in both the Pacific Northwest (PNW) and Gulf were lower this week.
Dry weather is making farmers cautious to sell as they wait to see how conditions will affect yields and quality.
Slow export pace has also moved basis prices lower.
From European markets, consultancy Strategie Grains raised its monthly forecast for the 2021 soft wheat exports from the European Union next season by 1.6 MMT due to improved competitiveness on the world market but lowered them for the current season.
It also lifted its EU 2021 barley and maize crop outlook, supported by good weather conditions.
Strategie Grains expects 2021 EU soft wheat production at 131.1 million tonnes, up from 129.6 million in May and 119.4 million last year.
EU soft wheat exports in 2021/22 were now pegged at 28.6 million tonnes, up from 27.0 million projected last month.
For barley, Strategie Grains lifted its estimate for the 2021 EU harvest by 300,000 tonnes to 53.9 million tonnes.
It slightly raised its forecast of EU maize production by 100,000 tonnes to 65.3 million tonnes.
Non-commercial market participants extended their net long position in Euronext’s milling wheat futures and options in the week to June 11, data published by Euronext on Wednesday showed.
Non-commercial participants, which include investment funds and financial institutions, increased their net long position to 86,661 contracts from 66,938 a week earlier, the data showed.
Commercial participants increased their net short position to 128,819 contracts from 110,351 a week earlier.
Commercials’ short positions accounted for 62.3% of the total short position, while commercial long positions accounted for 42.5% of total long positions.
Non-commercial short positions represented 37.7% of total short positions, while non-commercial net long positions accounted for 57.5% of the total longs.
The report covered all of the open short positions and nearly all of the open long positions in the wheat derivatives.
In Euronext’s rapeseed futures and options, non-commercial market participants lowered their net short position to 10,814 contracts from 12,119 a week earlier.
Commercial participants decreased their net long position in rapeseed to 5,877 contracts from 6,267 a week earlier.
In this context, Matif September wheat futures was 3,00 euros lower from last week, reaching to €208,25/t.
Matif corn August futures dropped 18,00 euros to closing the week at €243/t.
Matif rapeseed August futures, tumbled 28,50 euros ending the week at €488,25/t.
