05/21/2023 Sunday Market Preview

Grains are vulnerable to follow-through selling and spillover pressure from financial market nervousness over the debt ceiling, but futures have various points of technical support to test close by. In the Headlines The nearby corn and soybean futures spreads weakened last week as traders turned more bearish about export demand and processing margins. Unwinding of the bull spreads was encouraged by another Chinese corn export cancellation and following a disappointing soybean crush report. The July/September corn spread fell from its Monday peak of 82 1/2 cents down to a close of 60 cents on Friday. The July/August bean spread fell from 78 to 59 1/4 cents. The stock market turned lower along with the dollar index during the middle of the session on Friday following a breakdown of the debt ceiling talks between Republican legislators and the White House. President Biden said he would be speaking with House Speaker Kevin McCarthy on Sunday about coming together on a deal that would allow the federal government to avoid default, something that the Treasury Department has warned could come as soon as June 1st. Hiroshima, Japan was the host of a weekend summit for the Group of Seven (G7) members that include…