Brz Soybean Market: Trades reported yesterday on FOB for June shipment at -58n (+2 on the day and +12 for the week), July traded at -30n (+5 on the day and +14 for the week). By the end of the day, bids at -28n. August trade at +40Q. By the end of the day, +40 turned bid, +15 cents WoW. The trend of strengthening soybean premiums in FOB continues, also impacting CFR. Yesterday, it was mentioned that Dreyfus sold in CFR for July shipment and covered these sales in the Paranaguá paper market. Someone sold in CFR for August at +90n and was also buying in the FOB paper market. Farmer selling was weak yesterday. Agrinvest brokers mention 500k. In the interior, the flat price declined, but the basis continues to strengthen. The replacement cost CFR China remains higher than the trade levels.

Crush margins continue under pressure in Brz. They are still positive around $10 to $15 per ton, but well below the March levels of $40/t. For the new crop, the interior margin is negative at $10/t. Crushers are out of the market for the new crop. New trades are being made through barters.

In CFR China, overnight trades reported on Tuesday for June and JJ between +60n and +67n. In today's overnight session, trades reported between +70n and +73n for June and JJ shipment. Offers from Argentina and the US are starting to appear for June and July shipment, but they are far from the trade levels. Trades reported yesterday at +90n for August shipment. Today, trades reported at +98-99n. China will have difficulty covering the demand for August and September. Brazilian traders are increasingly focused on corn logistics and origination.

*Brz - CFR China:* Offers for June at +70/71/72n and bids at +65/68n; for July, offers at +82/100n and bids at +71/73/75n; for August, offers at +100n and bids at +90n; offer for February at +125h, March at +92/95h, April at +85k, and May at +100k.

*USA - CFR China:* PNW offer for October at +248x and Gulf at +245x; for November, indications for Gulf at +240x and for December shipment at +242x.

*Replacement CFR:* LH July from the Gulf starting at +210n and LH August at +210n. Brazil September at +125n. PNW for October shipment at +110n.

*Corn Market:* Agrinvest Brokers reported some inquiries for June till Sep for all sizes and ports but buyers seem still not ready to pull the trigger at current values. Swaps you can get all kinds of it, but the bid and ask are still far apart. The lack of outright bids is making tougher to connect interests. Origination was good again. Agrinvest brokers estimate around 550k.

Corn futures in Brz climbed more than 4% at the end of the day ystd. More speculatiosn about CONAB programs. Nothing official yet.

BRAZILIAN CORN MKT

May 23rd

STS/TUB

LHjly ?? vs 8

10-31July 25* vs ??

AUG ?? vs 42*

LH Aug 50* vs ??

LH Sep 52* vs ??

OCT 55* vs 40

NOV 65* vs 42

BARCA/ITAQUI

FH July 28/27 vs 8

AUG 53 vs 40

SEP 50 vs ??

LH Nov 60 (chin) vs ??