-Corn and soybean planting slows but remains well ahead of average
-Corn conditions in line with average
-Palm oil futures sharply higher overnight
-Brazil cane processing continues strongly for sugar but ethanol production still running higher
-No USDA new sales announcements
Due to the holiday on Monday, this week’s regular USDA and EIA reports will be delayed one day. Accordingly, the EIA’s ethanol data will be released on Thursday and Export Sales on Friday. The CFTC’s COT data will be released on Friday as usual, though.
 Yesterday’s USDA Crop Progress update included the first corn crop condition ratings of the season at 70% good/excellent. Direct year ago comparison aren’t available as 2019 conditions weren’t first reported until June 9, but last year’s initial condition was 59% g/e. The current condition rating is right at the average for the first report of the year over the last five years of 70% g/e (59% 2019, 79% 2018, 65% 2017, 72% 2016, 74% 2015). The first conditions of the year for soybeans and spring wheat will be released next week.
 U.S. corn planting is 88% complete (90% expected) vs 80% last week, 55% last year and 82% average. ND remains slow at 54% vs 79% average, but did make solid gains from the previous week’s 20%. Soybean planting is 65% complete (69% expected) vs 53% the previous week and 55% avg. Last year, just 26% of the crop was planted. Spring wheat planting is 81% complete (77% expected) vs 80% last year and 90% average. ND finally had a strong week jumping to 70% complete from 40% a week ago, but still behind average of 88%.
ï‚· Overall winter wheat crop conditions rose 2% in good/excellent last week to 54% (53% expected/61% last year), thanks to increases of 7% g/e in OK, 3% NE, 4% CO, 8% MT, 4% WA and 2% ID. KS conditions were unchanged, though, while TX declined 4% g/e. SRW conditions, overall, declined with AR, MO, IL, IN and OH all posted lower conditions last week.
 The first reported case of coronavirus at Brazil’s Paranagua port was reported (a crew member of a vessel), leading to the temporary closure of soybean loading operations at one of the port’s berths. Operations are reportedly back to normal after the ship/crew was quarantined.
ï‚· The Malaysian Palm Oil Board sees crude palm oil prices potentially rising to 2,300-2,400 ringgit/tonne ($528.37-$551.34) in the months ahead on improved export demand prospects as the relationship with India has improved. At the end of last week, benchmark August palm oil futures finished at 2,167 ringgit/tonne (~$497), but rallied sharply overnight after being closed since Friday, to finish at 2,281 ringgit/tonne (~$524). Malaysian palm oil production for the May 1-25 period was estimated down 6% from a month ago, while exports during the same period are seen up 5-10% from a month earlier. Previously, the Malaysian Palm Oil Association said they expected May palm oil production to rise nearly
12% from April.  Since the start of the Brazil’s 2020/21 sugar marketing year on April 1, the key center-south producing region has allocated 45.3% of cane processing to sugar, up sharply from 32.2% last year during the same period. Cane crush of 103.0 MMT so far is up nearly 22% from last year’s 84.7%. While the portion of cane used for ethanol is down sharply from a year ago, cumulative ethanol production since the start of the
marketing year of 4.40 billion liters is up nearly 9% from last year’s 4.05 billion liters given the large increase in cane crush. Ethanol demand in Brazil has improved from the sharpest coronavirus-related declines, with demand in the first half of May down 24% from last year vs the near 50% decline in April.
 The only USDA sales “announcement†today was the switching of 138k tonnes of SBM previously reported as unknown to the Philippines. Later in the day yesterday, USDA made a small correction to the announced soybean sale to China of 284k tonnes, revising the old crop sales portion to 60k tonnes from 66k initially reported and new crop to 204k tonnes from 198k initially.
ï‚· President Trump is expected to announce some sort of action against China this week in reaction to the national security laws on Hong Kong.
Weather
Rains will fall off and on across most of the Midwest for the next 2-3 days, with additional totals in that time frame in the .50-1†range and some isolated heavier totals possible as well. The only area to not see much rain fall this week will be most of MN. Dry weather looks to settle into areas NW of a line from St Louis to Alpena MI by Friday and then into all of the region by Saturday. The 6-10 day outlook still shows ridging to develop, but the European has it flattening out by the middle of next week allowing rains of .40-1†to fall across around 65% of the belt with no strong bias, while the GFS still sees most of the rain activity to be held north and into the upper Midwest- north of most of the growing regions. The 11- 16 day outlook still see ridging to dominate much of the period, producing above average temps and below average rainfall. A flattening out of the
ridge is still indicated towards the end of the period (June 10-11) allowing rains to occur in most areas.