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DTN Closing Grain Comments 06/01 13:58
Oil Prices Surge, Friendly Weather Weighs On Crop Futures
Spring-planted crop futures slid again to begin the new week and month of
June with drought-mitigating rainfall noted across the western Plains and
southeastern United States over the past week and especially good coverage
through the weekend. Meanwhile, energy futures were firm with West Texas
Intermediate oil prices up 7% on the day at one point as Iranian state media
reported the Iranian government was ceasing all negotiations with the U.S.,
citing violations of the ceasefire agreement. Reports of exchanged attacks in
the Persian Gulf have been common over the past two weeks. The latest
escalation comes just four days after reports on Thursday of last week that
Iran and the U.S. had agreed to a 60-day ceasefire extension and a reopening of
nuclear negotiations. However, there is little sign of a reopening to the
Strait of Hormuz to commercial energy trade and traders may move to build risk
premium back into the market after oil prices fell through May for the first
monthly loss in five months.
Rhett Montgomery
DTN Lead Analyst
GENERAL COMMENTS:
July corn closed down 2 3/4 cents and December corn was down 2 1/2 cents.
July soybeans closed down 6 cents and November soybeans were down 1 1/4 cents.
July KC wheat closed down 2 3/4 cents, July Chicago wheat was down 1 3/4 cents,
July MIAX Minneapolis wheat was down 11 3/4 cents.
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